ASIAN SKY QUARTERLY: ETHICAL AIRCRAFT TRANSACTIONS BRIAN PROCTOR, CHAIRMAN IADA

| ASIAN SKY QUARTERLY — SECOND QUARTER 2019

Brian Proctor, Chairman IADA


As the world’s only accreditation program for aircraft dealers and brokers, the

International Aircraft Dealers Association (IADA) was formed in 1991 to assure

aircraft buyers and sellers of the highest level of ethics, experience, standards

and trust. First established as the National Aircraft Resale Association (NARA), the

organization changed its name to reflect the international scope of the industry and

its members. Today, only 3% of all aircraft dealers merit IADA accreditation, while they

handle more than 50% of all pre-owned business jet transactions.


The process of attaining accreditation is notably stringent, with

requirements ranging from a minimum number of transactions per

year (10) to abiding by a strict 14-point Code of Ethics – reiterated

in an annual ethics and compliance training. Once granted initial

accreditation, dealers must then be re-accredited every three years.

“IADA is taking a three-prong approach to improving the brokerage

business: 1) Standardization; 2) Certification & Accreditation; and 3)

Data Integrity,” explains IADA Chairman, Brian Proctor.

When it comes to standards, the association is looking to simplify

and streamline the process of transactions – or “those aspects that

typically bog down transactions.” One example is through creating a

standardized letter of intent (LOI), which IADA hopes will become

adopted by its members over time.

In terms of certification and accreditation, IADA works with an

independent third-party agency, JosephAllan Aviation Consulting, to

develop, review and analyze the qualifications of each potential IADA

dealer. Those standards are “significantly more difficult than they had

been in the past,” says Proctor.

“There was a perception in the marketplace, particularly in the US, that

NARA was a ‘good ol’boys club’ and we want to change that perception.

We want to set apart IADA members so that clients can recognize that

there’s value in working with someone who is accredited.”

2019 brought about 16 new companies applying for accreditation. This

number dwindled down to nine accredited dealers. “In the history of the

organization the most companies to apply was seven; 16 was a big deal

and validation of the work IADA is doing,” says Proctor.

IADA is now working towards the accreditation of individual brokers,

supervised under IADA-accredited dealers. Each accredited firm must

have at least 50% of its brokers achieve Certified Broker Status within

12 months of becoming an IADA member.

“At the IADA spring meeting, we gathered 22 members and brokers

to develop test questions for a future training and educational guide

for individual brokers,” says Proctor, further explaining that this

certifies a consistent delivery of support and counsel throughout

an aircraft transaction.

One of the latest developments of IADA is the launch of an available

aircraft search portal (www.AircraftExchange.com), featuring listings

from IADA brokers and dealers. This online marketplace will allow buyers

to easily identify “reputably-listed aircraft for sale and consequently

facilitate transactions.”

In line with the association’s goal of maintaining data integrity, IADA has

enlisted the support of a respected aviation researcher to validate the

aircraft specifications listed on the platform, ensuring all information is

accurate and updated.

“Ultimately, the end user will benefit because as we raise standards and

as we elevate the profession there will be more transparency and value

to the product that we – as brokers and dealers – bring to the industry.”

IADA recently accredited 25 existing dealers and seven new dealers, all of

who passed the stringent requirements. The association will now focus

its work on accrediting brokers within those firms, while continuing its

effort for more efficient, effective and ethical aircraft transactions.

www.iada.aero

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