Liftbrief / Expert Q&A

7. What does Part 295 require a charter broker to disclose—and what must buyers ask for?

Put this to: Amanda Applegate.

Why it matters: distinguish legal disclosure duties from additional transparency the buyer wants to negotiate. Under 14 CFR 295.24, disclosures differ between those required automatically and those required on request. (ecfr.gov)

Question: “Which air charter broker disclosures should we expect before contracting, and how should we handle information that is initially unknown or subsequently changes?”

Disclosure categoryCore distinction to explain
Automatic, when known before contractingOperating carrier identity; broker’s capacity; existence or absence and limits of specified broker liability insurance
On requestRelevant carrier relationships when acting as the charterer’s agent; total cost paid to or through the broker; third-party charges payable directly
Unknown or changed informationTimely subsequent disclosure sufficient for an informed decision; required and requested information must be disclosed before transportation begins

These distinctions come from the regulation. Individual fee itemisation is not universally required by this provision. (ecfr.gov)

A good answer should also cover: a plain-English disclosure request; the consequences of late disclosure; and the difference between asking about commercial conflicts and asserting a statutory right to every margin calculation.

Follow-up: “If your commercial relationship favours one carrier, what evidence would demonstrate that the recommendation still suits this buyer?”

Evidence to request: written disclosures and the governing agreement. Have counsel assess remedies against the actual facts; do not describe every substitution as automatically creating the same cancellation right.

Expert quote: [Pending interview, attribution and approval.]