JetSwiss Pilatus PULSE - August 2022

PUBLISHED BY

JETSWISS AVIATION

PILATUS MARKET DATA

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AUG 2022

A DETAILED LOOK INTO THE CURRENT PRE-OWNED PILATUS MARKET THIS PILATUS WAS SPOTTED IN OSHKOSH WITH AN UPGRADED MT 7-BLADE PROP.

INTRODUCTION

PILATUS PC-12 MARKET OVERVIEW FOR AUGUST 2022 “Motivated Seller. Price Reduced for Immediate Sale. Price Drastically Reduced. Owner Purchased Replacement Aircraft.

Price Reduced!”

These are actual “taglines” and “advertising strategies” we have recently seen in the PC-12 market. What does this mean

for those of you that own a PC-12 or are looking to buy/sell one? As of today, it means very little. Actual transactional data

suggests sale prices have flatlined. However, in the world of “Brokerville,” sales organizations knowingly and enthusiastically took on listing projects and agreed to price aircraft well above market value. These bad-acting brokers who purposely inflated the market are the same ones that will bring it right back down, or at least attempt to do so. There are eight

airplanes on the market that have been available for 30-60 days; five airplanes that have been available between 60-90

days, and nine airplanes that have been on the market for over 90 days. In the hottest market in history, how are airplanes sitting on the market and not selling? The common theme amongst them is that they’re overpriced, nearing engine

overhaul, and/or have damage history. It’s these airplanes that are the ‘Motived Sellers,’ ‘Price Reduced for Immediate Sale,’ ‘Drastic Price Reduction,’ etc. The market is balanced when there are equal number of willing buyers and willing sellers.

Market dynamics determine values—not pipe dreams and sale pitches by aircraft brokers that don’t know anything about the airplane. Today, we are witnessing these results.

The good news is, if you’re reading this, you’re ahead of the sales pitches. The Pulse is arming you with the data to make informed decisions and provide you with perspective on what is occurring.

DAYS ON MARKET BREAKDOWN 7%

2%

0-30 Days on Market

2%

Days On Market Bre

16%

31-60 Days on Market 61-90 Days on Market 4-6 Months on Market

30%

7-12 Months on Market 1-2 Year(s) on Market 2+ Year(s) on Market

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25% 18%

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M A R K E T AT A G L A N C E

STRONG DEMAND ACROSS THE BOARD AND HIGH RESALE VALUES HAS BEEN THE BACKBONE OF THE PC-12 PROGRAM SINCE INCEPTION.

MARKET CHANGES IN THE LAST 30 DAYS

BY MODEL YEAR

8 1995 1996 2015

2018 2019 2021

SOLD FROM MARKET

NEW ENTRANTS TO MARKET

2007 2007 2008

2008 2012 2015

2016 2018

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AVAILABLE AIRCRAFT

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CURRENT MARKET PRICING

A I R C R A F T TOTA L T I M E V S . A S K I N GPrice P R I CBy E Asking $9,000,000

Total Hours

$8,000,000

Asking Price

$7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000

0

2500

5000

7500

Under Contract

10000

12500

15000

17500

20000

22500

25000

27500

Total Hours

No Contract

JAN - JULY 2022

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PRE-OWNED SALES

ASKING PRICE VS. MODEL YEAR This chart reflects the current market for Pilatus PC-12 aircraft that are on the retail market. Want to know how much your Pilatus dollars will buy? This is a great place to start. As you can see, the aircraft model year plays a key factor in pricing of the aircraft, and thus generates a commensurate trend curve. This data provides a baseline for our aircraft evaluations.

JAN - JULY 2021

72

PRE-OWNED SALES

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JETSWISS OVERSEES AND COMPLETES MORE PRE-OWNED PILATUS TRANSACTIONS THAN ANY OTHER DEALER IN THE WORLD.

AIRCRAFT TOTAL TIME VS. ASKING PRICE Similar to the Asking Price vs Model Year chart, this information helps our clients determine “the mileage on the car” for their specific budget. “Want to own a low time aircraft?” This chart will give you an indication on what you will spend. Note: aircraft under 1,000 hours total time historically yield much higher prices.

A S K I N G P R I C E B Y M O D E LAsking YEAR

Price By Model Year

$9,000,000 $8,000,000

Asking Price

$7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 1995 Under Contract No Contract

2000

2005

2010

2015

2020

2025

Model Year

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T R A N S A C T I O N A L D ATA

AV E R AG E AS K I N G P R I C E $9,000,000 $7,995,000

$8,000,000 $7,195,000 $7,000,000 $5,273,200

$6,000,000 $3,995,000

$5,000,000

Max of Current Ask Price

$3,995,000

Average of Current Ask Price

$3,548,750

$4,000,000

$3,000,000

$7,947,500 $7,900,000

$3,250,000

$2,000,000

$1,000,000

Min of Current Ask Price

$3,775,000

$2,946,357

$1,500,000

$0 PC-12/45

PC-12/47

PC-12 NG

PC-12 NGX

In the last 30 days we’ve seen a shift in the market data which is depicted above. Last month, aircraft Under Contract had a higher average asking price than the aircraft which remained for sale. Today the inverse is true.

The reason is, as the market slowed down for the summer, the airplanes which have come onto the market have higher asking prices relative to their competitors. This market shift will likely lead to price reductions in the near future. However, as we touched on in the introduction, actual transaction prices have remained fairly consistent.

We continue to see buyers being drawn toward the higher pedigree aircraft and they are willing to pay for such.

The fact that higher priced aircraft are what remain available simply shows the market has pushed back. Aircraft which are not priced correctly and do not represent current fair market value are not selling. Buyers today are being patient and waiting for the right airplane to come along. We like to say, “There will always be another airplane” and this is more true today than ever before.

$2.946M

PC-12/45 AVERAGE ASKING PRICE

$3.549M PC-12/47 AVERAGE ASKING PRICE

$5.273M

PC-12NG AVERAGE ASKING PRICE

$7.947M

PC-12NGX AVERAGE ASKING PRICE 5

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WONDER WHAT YOUR PILATUS IS WORTH? PC-12NGX

WITH OUR PROPRIETARY PILATUS MARKET ANALYSIS, WE CAN GIVE YOU AN ACCURATE, REALISTIC, AND FAIR MARKET VALUE OF YOUR PC-12.

ASK THE EXPERTS. 2% of the Pilatus fleet is for sale 2021 recorded over $450M in pre-owned PC-12 sales 23% of PC-12 pre-owned transactions are JetSwiss projects 43 NGX’s were delivered to the U.S. in 2021 Pricing increased approximately 25% in 2021

SCAN FOR YOUR COMPLIMENTARY AIRCRAFT EVALUATION. WWW.JETSWISS.COM

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JETSWISS UPDATE

A SMOOTH SUMMER AT JETSWISS

Happy first-time Pilatus owner, Susan

If you follow our social media pages (hint, if you don’t, now is a good time to do so) you likely saw our team attended Oshkosh. It was a great week for reuniting with friends and customers, having fun, and seeing some awesome airplanes. While we have had some fun enjoying the summer, our team has also been hard at work behind the scenes. We delivered a great aircraft to some fantastic folks (first-time buyers!). Our marketing department launched this publication and revamped our jetswiss.com membership portal. Our client relations department has worked feverishly to improve our communication channels to our customers. Our operations department has added another airplane to its management fleet and hired a new team member (Go Gage!).

Collectively, we’ve seen projects start, finish, and continue to evolve. As we turn the page to the fall, our organization is ready to support our clients— whether its buying, selling, or operations. Looking forward to more exciting projects getting off the ground as we push toward the end of 2022!

Founded in 2014, JetSwiss Aviation is a boutique aviation group specializing in acquisition, sales, management and operation of pre-owned Swiss-made business aircraft. We see more pre-owned Pilatus projects than anyone else in the world. Interested in learning more about Pilatus ownership? Our experts are here for you. Please reach out to pilatus@jetswiss.com.

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