JetSwiss Pilatus PULSE - November 2022

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

PILATUS PC-12 MARKET OVERVIEW FOR NOVEMBER 2022

STAGNATION NATION

Every week our team sits down to discuss our ongoing projects, flight schedule, etc. When we have a Pulse edition looming around the corner, we often consume a bit of time discussing the state of the market.

No surprise for early November, the underlying theme is still the same—uncertainty due to political, economic, and aircraft availability factors. However, by the time this magazine goes to print or reaches your inbox the sentiment could be different, as we will have been through an election! As of today, our team’s observations are as follows:

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

• There are some new arrivals to the market increasing inventory to 43 PC-12’s and 4 PC-24’s from 37 and 3 respectively.

• Seller’s greed continues, and in some cases, is rising despite lack of aircraft transactions.

• The market is trailing last year’s numbers by 20 preowned sales.

• Bad actors (‘Brokerville’) continue to tell airplane owners what they want to hear.

• Election results? What effect will this have?

• Concerns over the stock market and fears of a potential recession. Who are we kidding, we’re in a recession. Everywhere you turn says so…

• Which greedy seller will drop their price to fair market value? Buyers are waiting for this to occur.

• What broker(s) will continue to misguide their buying or selling client, just so they collect a commission check? This equates to breathing air…

The end of year is notoriously busy in aviation across the board. Stick with us as we weather whatever comes our way in the next few months.

Behind the scenes at JetSwiss, we’ve been fine-tuning our proprietary aircraft and market evaluation tool. Once completed, we will have the ability to value a Pilatus almost instantly. By developing a ‘real time’ value on aircraft our process will automatically rank the entire Pilatus market. This “leaderboard” will rank each available airplane by value. Want to know the best ‘value’ on the market today to purchase? Would you like to set the pricing on your aircraft for sale, whereby it ranks in the top five for value? Our model will provide these answers. We are excited to share this with our buying and selling clients. It will surely aid them in realizing assessing value and assist them in minimizing risk. We look forward to officially launching this platform in early 2023.

Fly safe, and we’ll see you next month, Bub

INTRODUCTION 1 PILATUS@JETSWISS.COM | 913-839-2627
JETSWISS RECENT NEWS AND EVENTS
MARKET AT A GLANCE 2WWW.JETSWISS.COM MARKET CHANGES IN THE LAST 30 DAYS BY MODEL YEAR 46 AVAILABLE AIRCRAFT NEW ENTRANTS TO MARKET12 SOLD FROM MARKET5 13 UNDER CONTRACT /45 /47 NG 2 0 1 NGX 27 2 6 N u m b e r C u r r e n t l y A v a i l a b l e 10 1 5 3 0 0 N u m b e r S o l d i n t h e L a s t 3 0 D a y s N u m b e r U n d e r C o n t r a c t *Sa es data only inc udes preowned transact ons Numbers may vary slightly based on delayed FAA filings O V E R A L L M A R K E T PC 24 4 2 1 TOTAL 46 5 13 1997 2002 2005 2007 2008 2008 2009 2009 2015 2018 2018 (PC-24) 2020 1996 2000 2000 2003 2003 2011 2012 2013 2014 2016 2016 2019 (PC-24) 2022 2001 2016 2018 2020 (PC-24)2020 (PC-24)

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 JAN - OCT 2022 90 JAN - OCT 2021 110 PRE-OWNED SALES PRE-OWNED SALES 3 $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 AIRCRAFT TOTAL TIME VS. ASKING PRICE
AIRCRAFT TOTAL TIME VS. ASKING PRICE
to the Asking Price
Model Year chart, this information
our clients determine
mileage on the car” for their
budget.
to own a low time aircraft?” This chart will give you an indication on what you will spend.
1,000 hours total time historically yield
higher prices. 4WWW.JETSWISS.COM OF JETSWISS TRANSACTIONS SINCE Q2 OF 2020 HAVE BEEN PRIVATE SALE. 65% $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 0 2500 5000 7500 10000 12500 15000 17500 20000 22500 25000 27500 Asking Price Total Hours Asking Price By Total Hours ASKING PRICE BY MODEL YEAR
Similar
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helps
“the
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“Want
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much
TRANSACTIONAL DATA PILATUS@JETSWISS.COM | 913-839-26275 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 TIME ON MARKET BREAKDOWN OF DAYS ON MARKET FOR PILATUS PC-12 Days On Market Breakdown 25% 10% 17% 30% 18%
6WWW.JETSWISS.COM $5.006M PC-12NG AVERAGE ASKING PRICE $3.403M PC-12/45 AVERAGE ASKING PRICE $4.165M PC-12/47 AVERAGE ASKING PRICE $7.461M PC-12NGX AVERAGE ASKING PRICE AVERAGE ASKING PRICE PC-12/45 PC-12/47 PC-12NG PC-12NGX 8,000,000 6,000,000 4,000,000 2,000,000 0 Max of Current Ask Price Avg of Current Ask Price Min of Current Ask Price $3,999,000$3,403,000$3,403,000$4,500,000$4,165,000$3,995,000 $6,500,000 $5,006,028 $3,750,000 $7,750,000$7,461,667$7,250,000

Our annual frantic race to closing last minute aircraft deals has begun. We have been fielding numerous questions and scenarios whether an aircraft qualifies for 100% bonus depreciation in 2022:

1. I will take delivery of a green aircraft and my pilots will take a test flight in December. The rest of the interior will be installed in January 2023. Can I take 100% bonus depreciaton in 2022?

2. My sales director called. There may be a delay at factory and the plane will not be completed and delivered until January 2023. I will write a check before December 31 to pay for the plane in full so that I can take 100% bonus depreciation in 2022.

3. I am buying a pre-owned aircraft from overseas. The estimated time to complete the pre-buy, import and FAA registration will be 10-12 weeks. I will close while the plane is overseas and fly a business trip to look for a property in London so that I can capture 100% bonus depreciation in 2022.

4. A major inspection is due for a pre-owned aircraft that I am interested in. Due to parts shortage, the plane will not be ready to fly until January 2023. I will close while the plane is at the maintenance facility and take 100% bonus depreciation in 2022.

5. My friend is selling me an aircraft but he does not want to report recatpure gains until 2023. Therefore, our contract will have a 2022 date for me to capture depreciation in 2022 and he will report the gains in 2023.

The creativity to get an aircraft acquisition completed before year end has reached an unprecedented level! With so many case laws on this topic, the answer is relatively simple and straight forward in my opinion.

2022 100% bonus depreciation can be taken if a business aircraft is placed in service by December 31, 2022.

This definition of placed in service comes from IRS Publication 946: You place property in service when it is ready and available for a specific use in a business activity. Even if you are not using the property, it is in service when it is ready and available for its specific use.

The second part of this definition may be new to some. It is correct that an actual business flight is not explicitly required in order to prove that an aircraft has been placed in servce. However, if you are counting on a significant tax benefit from depreciating a business aircraft, it is probably to your benefit to positively prove that a business flight took place in 2022, eliminating any doubt if the aircraft was placed in servce.

If a green aircraft does not have seats installed, it is not avaiable for its specific use - to carry passengers.

If a plane is flown overseas only, it fails the predominant US use test for MACRS property.

If a plane is still being manufactured and does not have an airworthiness certificate, it’s not available for its inteneded use.

Our advice is simple: take legal title to the plane and close the transaction by December 31, 2022, take a business flight, even on New Year’s Eve, place the aircraft in service and enjoy the count down to 2023!

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

EXPERT’S
100%
THE
TAKE:
BONUS DEPRECIATION
LEAVE THE NAVIGATING TO US ® ®

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