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PRE-OWNED PILATUS MARKET: HOW THE BROKER STOLE CHRISTMAS!
PILATUS MARKET DATA | DEC 2023
THIS MONTH’S BACK PAGE FEATURE: END OF YEAR AIRCRAFT MANAGEMENT TIPS
INTRODUCTION
HOW THE BROKER STOLE CHRISTMAS PILATUS PC-12 MARKET OVERVIEW FOR DECEMBER 2023 Let us tell you a story of a sweet businessman, who was taken advantage of by a grinchy broker. This gentleman has owned several airplanes. He is very successful. He can’t help but notice how much Pilatus are selling for (or the perception thereof). So, he reaches out to a local broker—someone he’s known for 20 years. Businessman says, “Hey, I’m thinking about selling my airplane.” The broker says, “Great! Boy, those Pilatus sure are selling for a lot of money these days.” With dollar signs in his eyes he continues, “Let me take a look at things and I’ll get back to you.” Two days later, broker comes back to the poor old soul, and says, “I think your airplane is worth $5M.” 275 days go by and finally, the aircraft is under contract—for $4M. That’s 275 days of insurance, hangar fees, etc. My, my, my… what a journey that sweet old businessman has been on with this green goblin grinch broker “friend.” How could someone so successful be so green? Two individual perceptions of reality. No offense, but both parties were massively mistaken. The broker was off base with the original value estimate, the poor businessman was massively off base thinking the broker knew what he was doing. Which equated into $1M less than perceived value. Now, for the really juicy information on this story. This businessman purchased his aircraft pre-covid for $3.5M. Don’t think for a second that he too didn’t have big dollar signs in his eyes when he started this process with a $5M asking price. Now, 275 days and a million dollars less in price, after commission and prepurchase expenses, he’s staring in the face of where he left off. The moral of this story is, don’t let any Who-ha down in Brokerville tell you what a Pilatus is worth.
Today there are 77 PC-12 aircraft for sale! This is roughly the same amount of aircraft that were for sale on December 1 of 2020. Why does this matter, you say? Here we are three years later and we’re back to the same inventory levels of early Covid.
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We’ve talked about the numbers and statistics almost every month since the inception of The Pulse magazine in June 2022. I won’t bore you with all the details of the journey over the last three years, but the bottom line is this: pricing today compared to three years ago is higher – still. And, if my hunch is right, pricing will not go down much more. I believe the “election year magic” will occur and the ‘rosy’ picture will be constructed yet again. The only factor(s), I believe, that will impact pricing will be the remaining souls that want to capture a big price on their aircraft/coupled with Brokerville telling them it’s worth more than it may be worth. This will equate to more supply and potentially a small amount of price adjustment. You will see pricing that is still higher than it should be, but secretly behind the scenes these brokers/sellers will get very aggressive on their negotiations—which will impact the final ‘sale’ price. Three years ago the average price of a PC-12 was $3.017. This number peaked to $4.520 in July of 2022!!! Today the average price is $4.256. This is still ranked at over roughly 98% of new pricing. Keep in mind, at the peak in July 2022 we saw pricing as high as 132% or new sticker price for a given model year. How does this impact buyers and sellers you say? Well, just like it always does — it shapes their perception and perspective. I can’t say it enough: do your homework, trust the source and the numbers, trust the process, PLEASE call references, and allow your guard to come down enough to be pleasantly surprised by the outcome of a trusted partner. Just like a great accountant, CFO, attorney, or personal doctor—you’ve had these people in your life for several years, why would you not put your trust in them? Navigating the course of market values as they are fluctuating and going down ever so slightly—combined with Brokerville shenanigans, should be left up to good resources. Personally, adding JetSwiss to this shortlist seems to make sense : -) So, my hope for next year, folks, is that Brokerville will tap into the true Pilatus spirit and realize that playing the numbers game is not the way to go about the selling season. Fly safe, Bub Maybe Christmas, he thought, Doesn’t come from a store. Maybe Christmas, perhaps, means a little bit more. -Dr. Seuss, How the Grinch Stole Christmas
M A R K E T AT A G L A N C E
MARKET CHANGES IN THE LAST 30 DAYS BY MODEL YEAR
24 1994 2002 2002 2004
NEW ENTRANTS TO MARKET
2004 2005 2007 2007
2010 2013 2014 2016
2017 2017 2018 2019
17 1996 2002 2003 2007
2019 2020 2020 2020
20%
2020* 2021* 2022* 2022
UNDER CONTRACT
2008 2008 2009 2009
2009 2011 2011 2013
2013 2014 2014 2020 2022
12 1998 2000 2003 2003
OVERALL MARKET
42%
SOLD FROM MARKET
0%
2007 2019 2008 2020* 2011 2021* 2017
*PC-24
/45
/47
NG
NGX
PC-24
TOTAL
New to Market
6
2
9
4
3
24
Number Currently Available
26
6
36
8
17
93
Number Sold in the Last 30 Days
4
1
4
1
2
12
3
1
11
2
0
17
Number Under Contract
*Sales data only includes preowned transactions. Numbers may vary slightly based on delayed FAA filings.
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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 G P R I C E
Asking Price By Total Hours $9,000,000 $8,000,000
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.
$7,000,000
Asking Price
$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
Total Hours
No Contract
JETSWISS
SEES MORE
PRE-OWNED
PC-12
TRANSACTIONS
THAN ANYONE IN THE WORLD.
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12500
15000
17500
20000
/45’S AND NG’S SAW A
REDUCTION IN PRICE FOR THE
THIRD
CONSECUTIVE MONTH.
ASKING PRICE BY MODEL YEAR
Asking Price By Model Year
$9,000,000 $8,000,000 $7,000,000 $6,000,000
Asking Price
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.
$5,000,000 $4,000,000 $3,000,000 $2,000,000
$1,000,000 1990 Under Contract No Contract
1995
2000
2005
2010
2015
2020
2025
Model Year
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T R A N S ACT I O N A L DATA
ASKING PRICE BY MODEL
AV E R AG E AS K I N G PR I C E SINCE LAST MONTH
$3.148M
1.2%
$3.556M
9.7%
$4.744M
2.4%
$6.858M
5.2%
$12.570M
1.1%
PC-12/45
PC-12/47
PC-12NG
PC-12NGX
PC-24
Max of Current Ask Price
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Avg of Current Ask Price
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Min of Current Ask Price
WHERE IN THE WORLD IS YOUR NEXT PILATUS?
We are always on the search for great pilatus projects for great people. Whether you’re looking to buy or sell, we’d like to start the conversation!
TALK TO THE EXPERTS. 3.5% of the Pilatus fleet is for sale. 35% of JetSwiss projects sell to owner pilots. 23% of PC-12 pre-owned transactions are JetSwiss projects.
SCAN FOR YOUR COMPLIMENTARY AIRCRAFT EVALUATION.
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PC -24 CURRENT MARKET PRICING
PC-24
OWNERS UPGRADE FROM THE PC-12NG MORE THAN ANY OTHER AIRCRAFT.
17
243
TOTAL NEW DELIVERED
PC-24 BY THE NUMBERS
AVAILABLE FOR SALE
A S K I N G P R I C E BY TOTA L H O U R S
Asking Price By Total Hours
$15,000,000
$13,000,000
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.
Asking Price
$11,000,000
$9,000,000
$7,000,000
$5,000,000
$3,000,000
$1,000,000
0
For Sale Under Contract
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500
1000
1500
Total Hours
2000
2500
ASKING PRICE BY MODEL YEAR
Asking Price By Model Year
$15,000,000
This chart reflects the current market for Pilatus PC-24 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.
$13,000,000
Asking Price
$11,000,000
$9,000,000
$7,000,000
$5,000,000
$3,000,000
$1,000,000 2018 For ForSale Sale Under UnderContract Contract
2019
2020
2021
2022
2023
2024
Model Year
THE PC -12NGX WAS
SECOND BEST SELLING AIRCRAFT IN THE WORLD IN 2022. T H E P C -24 WAS
NINTH BEST.
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P I L AT U S DATA
FLEET LOCATION
PC-12 AND PC-24 AS OF DECEMBER 2023
368
1,551
58
76
73 92
9
BREAKDOWN BY REGION
PC-12/45
PC-12/47
PC-12NG
PC-12NGX
PC-24
NORTH AMERICA
476
160
596
181
138
EUROPE
22
11
164
90
81
AUSTRALIA
20
7
47
10
8
AFRICA
20
10
34
5
7
SOUTH AMERICA
9
4
35
17
8
ASIA
5
1
44
4
4
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TIME ON MARKET B R E A K D O W N O F DAY S O N M A R K E T
4%
(3 AIRCRAFT)
F O R P I L AT U S P C -1 2
0-30 Days on Market
14%
(10 AIRCRAFT)
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
21%
(15 AIRCRAFT)
25%
23%
(18 AIRCRAFT)
(16 AIRCRAFT)
13%
(9 AIRCRAFT)
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END-OF-YEAR AIRCRAFT MANAGEMENT TIPS It’s that time again! While you’re reflecting on all the fun you’ve had flying over the last year, it may also be an opportunity to shore up some details regarding your aircraft. Whether it’s you, your pilot, or your management company, here are a few helpful tips to a cleaner 2024.
A little look back never hurts… Document aircraft usage and spend. It is extremely helpful to have easy access of the aircraft history usage and operating costs. Make sure the last year’s manifest and maintenance expenditures are well documented. “A couple hours spent in December can save a weeks’ worth of investigation a few years down the road,” says Steve Valbracht, manager of six Pilatus aircraft. Document and address every squawk (If you haven’t already). Documenting and addressing every squawk, no matter how small, is critical. If you haven’t already, make a plan to fix things the “right” way in the new year. It can be tempting to take shortcuts to save money or defer the maintenance of an item until it reaches a critical point, but reliability and availability is far more important than the small amount you may save by taking a shortcut. Steve says, “When it comes time to trade the airplane, your extra care in maintaining it will be evident.”
Now, let’s look ahead… Book upcoming inspection and maintenance. Get it on the calendar! Snatch up your maintenance or inspection slot to decrease downtime in 2024. We also
®
LE AVE TH E NA VI G A TI NG TO U S
®
would go out of our way (even if we did it early) to avoid December annuals! It is a pressing time of the year, and your family and business needs seem to be wanting to fly as well, so find another month that works best! Update the budget. A simple talk with the service facility can help you make sure your 1-5 year budget is as accurate as possible, and alert you to any additional downtime that needs to be planned for supply chain issues. Secure pilot training slots. If you’re utilizing FSI, a private training provider, or Simcom, get on the list for training. Slots have been hard to find since COVID. AND, your friendly insurance underwriter is itching for a reason to say “no” when it comes to approved training. Reassess your risk exposure. Confirm you have adequate insurance coverage moving forward (proper hull values and maximum liability amounts for example), but more importantly reviewing your Operational Control arrangement. You never know when you’re going to get a visit from your friends at the FAA or, God forbid, you have an event where the aircraft is damaged or there is loss of life.
Extra Credit Clean behind your gears. With the PC-12, it’s a good idea to consider cleaning and paint touchups, carpet deep cleaning, etc., for the turboprops with exhaust staining and just normal wear and tear. There are some great products that can help eliminate any exhaust staining, but you need to stay on top of it. Ceramic coating is another (pricier) option. Also, finding an outstanding aircraft detailer is crucial to keeping your aircraft in tip top shape. If you want to visit KC sometime, we have one of the best here! Remember, JetSwiss is here to help answer any questions you might have about end of year Pilatus management. Thanks to our contributors and friends Michael Cauthen with Avalair and Steve Valbracht with Marshalltown Aviation. These gents are two of the best you’ll find. Great aircraft, great clients, and great people will make 2024 a wonderful year!
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