JetSwiss Pilatus PULSE - December 2022

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A DETAILED LOOK INTO THE CURRENT PRE-OWNED PILATUS MARKET
DATA | DEC 2022
PUBLISHED BY JETSWISS AVIATION
PILATUS MARKET

PILATUS PC-12 MARKET OVERVIEW FOR DECEMBER 2022

Six months ago, aircraft values were on a solid trajectory for Jupiter. Yes, it’s a planet and it’s way out there. Surprisingly, some sellers and Platinum Card members of ‘Brokerville’ did make landings on this planet during this crazy sellers’ market. However, values are now tracking back down to Mars—just down the street from Mother Earth—hovering in what normal folks would term as a strong sellers’ market. If the actual transactional data remains consistent, we’re going to stay less astronomical with values and asking prices for the near future. In addition, it’s our belief here at JetSwiss that as long as the OEMs have a 2-to-3-year backlog for new aircraft, the preowned values are going to remain relatively firm. We may never see Jupiter again!

Ah yes, Jupiter. That magical planet where the values of used aircraft are 128% of their new retail sticker price. Where people are sitting around for six months (or longer) waiting to receive their asking price. Today on Jupiter people are standing around looking at each other (like deer in headlights) holding on to the greedy dream of a home-run sale.

To further our solar system analogies, we can probably equate the current market to Mars. Things are much different on this planet. We’ve seen a few airplanes come online that were priced correctly and they sold rather quickly (we would term this a normal market price/demand sale). This activity tells us that there are buyers out there for the right priced aircraft. In fact, we just brought a 2013 to the market and it sold almost immediately for approximately

108% of its new sticker price. So, still a very strong price, but certainly not Jupiter pricing! Caution: Do your homework Sellers, don’t get sucked into ‘what you want to hear’ by bad brokers.

Looking into 2023, we sense a lot of curiosity about what is going to transpire in the next quarter and the next year in general. Even with some new aircraft entering the market we’re still at sub 3% of the fleet for sale—which is still, by definition, a sellers’ market. We recently visited with an industry colleague and his perspective was that the vast majority of this year’s buyers already purchased their aircraft in the third quarter. Based on activity levels and the numbers, we agree. Somewhat to this point, we believe there’s a lot of people that are willing and able to buy that are sitting on the sidelines. They think that if they wait, they’re going to get a better deal. Unlike the real estate industry, which is no doubt being affected by interest rates and the economy, the companies and individuals who are doing well still have an appetite for private aviation and usually a business justification to do so. They simply seek a good aircraft at a market fair price, and they will purchase.

Lastly, OEM supply chain issues and factory new delays has placed an interesting dynamic to the end of this year: a new Pilatus that would have been delivered in November or December is now delivering in February or March. Existing owners are not sure they can sell their old aircraft in 2022, because they are replacing it with the new aircraft in 2023! From a tax standpoint this creates a challenge.

OTHER NOTABLE POINTS THIS MONTH

• The market is stagnant. Sellers want too much for their aircraft and are not adjusting their prices (much). However, we’ve seen some price adjustments from ‘crazy’ down to ‘extra high’.

• Available aircraft is down 10% from our November Pulse print month (46 to 41).

• There have been 99 pre-owned sales through the end of November, versus 120 last year this time.

• The “red wave” election did not occur. November was very quiet in the industry, phone inquiries very low.

• Numbers compared to last month:

• Average ask price of /45 variant increased by $77,000

• Average ask price of NG variant increased by $64,000

• NGX variant average pricing decreased by $130,000

• /47 variant stayed the same!

INTRODUCTION 1 PILATUS@JETSWISS.COM | 913-839-2627
MARKET AT A GLANCE 2 WWW.JETSWISS.COM MARKET CHANGES IN THE LAST 30 DAYS BY MODEL YEAR 41 AVAILABLE AIRCRAFT NEW ENTRANTS TO MARKET 9 SOLD FROM MARKET 9 10 UNDER CONTRACT 1997 2002 2002 2012 2016 2020 2020 2021 2021 (PC-24) 1997 2001 2002 2007 2008 2008 2009 2015 2018 2020 (PC-24) 1996 2009 2009 2012 2013 2014 2016 2020 (PC-24) 2022

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.

CURRENT MARKET PRICING
PILATUS@JETSWISS.COM | 913-839-2627 PRE-OWNED SALES JAN - NOV 2022 99 JAN - NOV 2021 120 3 $1,000,000
0 2500 5000 7500 10000 12500 15000 17500 20000 22500 25000 27500 Asking Price Total Hours Asking Price By Total Hours AIRCRAFT TOTAL TIME VS. ASKING PRICE Under Contract No Contract
$2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000

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.

4 WWW.JETSWISS.COM ON AVERAGE JETSWISS SALES ACHIEVE 97% OF THE ASKING PRICE $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 1995 2000 2005 2010 2015 2020 2025 Asking Price Model Year Asking Price By Model Year ASKING PRICE BY MODEL YEAR Under Contract No Contract
TRANSACTIONAL DATA PILATUS@JETSWISS.COM | 913-839-2627 5 0-30 Days on Market 31-60 Days on Market 61-90 Days on Market 4-6 Months on Market 7-12 Months on Market 1-2 Years on Market TIME ON MARKET BREAKDOWN OF DAYS ON MARKET FOR PILATUS PC-12 25% 17% 22% 14% 19% 3%
6 WWW.JETSWISS.COM $5.070M PC-12NG AVERAGE ASKING PRICE $3.480M PC-12/45 AVERAGE ASKING PRICE $4.165M PC-12/47 AVERAGE ASKING PRICE $7.332M PC-12NGX AVERAGE ASKING PRICE AVERAGE ASKING PRICE Max of Current Ask Price Avg of Current Ask Price Min of Current Ask Price $3,999,000$3,480,214 $2,600,000 $4,500,000$4,165,000$3,995,000 $6,500,000 $5,070,130 $3,950,000 $7,750,000$7,332,500$6,995,000

HOLIDAY RUSH

Despite a relatively quiet November, the end of 2022 is gearing up to be a busy one at JetSwiss. With a handful of aircraft in our inventory, year-end deliveries are fast approaching and we’re ready!

TOOLS OF THE TRADE

Our team continues to make updates to our market dashboard, allowing our clients and JetSwiss Insiders to stay up to date on fair and accurate PC-12 and PC24 sales and pricing. In addition, our Buyer’s Guide is a great tool we’ve created to help people looking to start their Pilatus search off right in 2023.

JETSWISS YEAR-END WRAP UP

NEED A LIFT?

We now have a wheelchair lift at JetSwiss. Next year, we will begin providing free transport to wounded veterans and those in need. If you know an organization or individual that could use a lift, please reach out!

HAPPY HOLIDAYS TO YOU AND YOURS

We’d like to thank you all for your readership and friendship this year. Our livelihood and families are built on Pilatus-lovers like you. May 2023 bring sunshine and smooth skies!

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We appreciate your feedback! Please send any feedback to Pilatus@jetswiss.com.

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