At JetSwiss, we love to use analogies and metaphors to get our point across. In recent editions of the Pulse, you might have learned about the card game “Shoot the Moon” or received a lesson in the astronomy of our galaxy. That theme is going to continue this month, so bear with us while we try to educate and entertain.
Anybody with young kids or grandkids is likely aware of the game called “Chubby Bunny.” For those of you that are unaware, a kid will stuff their mouth with a marshmallow and attempt to say, “Chubby bunny!” This continues by adding one marshmallow at a time until their mouth is so full that they either spit them out laughing so hard or the game stalls because nobody can coherently say the phrase anymore. Usually, the game ends in laughter and an eruption of marshmallows.
The Pilatus market is currently stuffing its mouth with marshmallows. Since the calendar turned to 2023, the market has seen the addition of 16 airplanes for sale. For those who have been tracking the Pilatus market as we have, this is astounding. At one point in time, there were only 16 airplanes for sale across the globe! However, sellers are still pricing their aircraft as if there are only 16 airplanes available. Prices for the recent additions to the market have averaged 120% of their original sticker price. When the market peaked around Q2 of 2022, PC-12s were selling anywhere from 105 to 125% of their original price. During this time, inventory was scarce, inflation was lower, and interest rates had not yet skyrocketed. Further, 32% of the available market has been for sale for over 100 days. Of those aircraft we’ve seen 11 price reductions, averaging
a 9% discount off their initial asking price. These factors have led to a temporary stall in the market as buyers are staying patient and watching what is developing. Will the market continue to stuff its mouth with marshmallows (additional airplanes for sale) or will it spit them out (dropping their price) because it became too full? Our money is on the latter.
How do you navigate this market? If you’re selling, the market has shifted to the point where you’ll have competition. It’s more important than ever to hire a professional who knows the aircraft, will price it correctly and will implement a comprehensive marketing strategy. Gone are the days of throwing an airplane onto Controller.com, receiving a bidding war, and avoiding the potential pitfalls of a pre-purchase inspection. The attitude of “take it or leave it, my way or the highway” will lead to 250+ days on the market, multiple price reductions, and a poor transaction experience. If you’re looking to acquire a Pilatus, staying patient, trusting your advisor, understanding market dynamics, and putting procedures in place to avoid landmines will determine whether you have a successful transaction or not.
All in all, the market remains strong. Airplanes are still selling for approximately 100% of what they sold for new. There is just a very noticeable shift. Airplanes are coming onto the market at a greater clip than they’re departing. Looking forward to more action in the months ahead.
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.
THE NUMBER OF PC-12S AVAILABLE HAS ALMOST DOUBLED SINCE LAST 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.
ON AVERAGE JETSWISS SALES ACHIEVE 97% OF THE ASKING PRICE
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
issues, to component failures, etc., there was never a dull moment. Back then Jed and I coined our daily routine as “sliding down the fire pole” of sorts. It was never the same thing each day, and we often had to improvise and become ‘road warriors’ to rescue an airplane or operator on a whim. We were busy and we loved it. We loved it because of the challenge. But the real reason we loved it, was because our high levels of passion for this wonderful aircraft were allowed to flourish. We couldn’t get enough of the challenge. We couldn’t get enough of the daily mission satisfaction. We couldn’t get enough of showing the world how wonderful the Pilatus was. Oftentimes, we would sit at home on a Saturday night waiting for the phone to ring, just so we could dispatch on another mission. These early days and challenges started the journey of Jed’s passion for Pilatus and the start of him being the great “wingman” he was.
This month at JetSwiss we honor a long-time friend, Jed Johnson. Jed started his Pilatus journey back in 1996, with what was then called Pilatus Business Aircraft (PILBAL). PILBAL, was the Pilatus Factory headquarters for the Western Hemisphere based out of Rocky Mountain Metro Airport (KBJC) in Denver. Shortly after Jed joined the US team for Pilatus, I had the opportunity to join him. Jed and I had been buddies since college, we worked out together, we flew together, and we even dated girls who were roommates at the same time. Enough on that, but safe-to-say, he was a brother to no end and our journey started long ago.
The early days at Pilatus were littered with challenges as you might imagine. Having this newly certified Swiss single-engine turboprop brought about growing pains of various levels. From systems problems, to certification
As the years passed, Jed went on to various roles within the Pilatus program, sales, chief pilot, test pilot, and of course helping with the certification of the Pilatus PC-24 jet. Again, through it all, his passion shined in everything he did. He blessed everyone around him. For the couple of years before his passing, he continued his passion by acting as a mentor pilot (“wingman” if you will) for the less experienced Pilatus pilots. To say Jed Johnson was a consummate “wingman” would be an understatement. He was my ‘wingman’ for 30+ years, a groomsman in my wedding, and the brother I did not have. He will be missed. In his honor, I am encouraging my friends, family, and colleagues to explore their passion to the fullest and become a good “wingman” to those around them—two wonderful tools to live life by. Well done, Jed.
