PILATUS PC-12 MARKET OVERVIEW FOR MAY 2023

Shifting Into Third Gear

Like many kind conversationalists, my friends and family often ask, “How’s business?” When it comes to this question (and many others) I can get long-winded. Pair that character trait with reporting on market activity over the past few months and I feel like a broken record. So, I have been working on my response—keeping it short without being rude—especially when Dad calls... ;)

So, here’s my short answer with a longer explanation: business is in 2nd gear and slowly shifting into 3rd.

I say this for a couple of reasons. First, in my lifetime I will likely never see 6th gear again (like our crazy market the past two years), so anything less than this seems quiet. Secondly, guys like me just ‘feel’ things when it comes to the market. Though they are picking up gradually as we write this edition, activity levels (phone calls, email inquiries, web forms, etc.) are certainly not what they were like eight months ago. We have buyers and sellers for aircraft, but nothing compared to the 6th gear levels seen in the past couple of years. For reference, we coin a healthy Pilatus market as approximately 65 to 85 airframes for sale. Also, when you look at the retail websites for aircraft listings, 10 of these listings are fractional sales of some kind, so whatever total “for sale” number is stated anywhere, subtract 10 airframes.

What is going on at JetSwiss?

We are currently very active with our acquisition clients, as well as speaking with a handful of additional interested buyers who seek our expertise. The consensus of buyers today is that they feel like it may be their time. In other words, they’ve watched the market go crazy and now that pricing has simmered a bit, they are feeling better about paying market prices. Prices have dropped anywhere from 1 to 3 percent in the last 30 days depending on which variant you are looking at. In addition to supporting our existing clients, management clients, etc., we have utilized our time finetuning a new feature for our clients called the PVR (Pilatus Value Rating) system. This is a complex mathematical algorithm integrated with market data and aircraftspecific data—designed to provide a ranking of the market. This idea was originally thought of during one of our acquisition projects when the client asked, “What’s the best value on the market today? I know the market is crazy, so cut through the BS and tell me the airplane you would pursue a purchase on and why...” Sure, anyone can subscribe to Vref or Aircraft Blue Book Digest, but these services cannot provide a PVR in any fashion. Our PVR system allows us to ultimately illustrate what our clients are asking us to find—the best aircraft for the best price, with the best diligence, process, and protocols. We are able to quantify the entire market, then adjust various parameters within the system to determine a short list of aircraft. It’s magic!

Lastly, we have been in contact with a few Pilatus owners regarding selling their aircraft. Normal stuff, right? Yes, but in many of these cases, sellers are asking for the value of their Pilatus and then formulating an outright purchase option for JetSwiss to purchase. Wait, what was that? You heard it. Some Pilatus owners do not want the time, hassle, and risk associated with a traditional aircraft brokerage arrangement. Thus, they quantify what it’s worth to have a check in hand for their aircraft. These are smart businesspeople. They fully understand the economics, market, and risk surrounding the sale of their Pilatus.

So, if you are looking for a new way to answer the question, “How’s business?” and want to stick your toe into the water and peek at what dollars could go into your pocket by selling your Pilatus, drop us a note! You may be surprised at how simple the process is for a smart return.

Fly Safe, Bub