| 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
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.