BEYOND THE BUY
PILATUS PC-12 MARKET OVERVIEW FOR DECEMBER 2024
It’s the holidays folks. Time for tinsel and parties and family and... year-end finances. This month’s theme is all about money, and let’s face it, this topic looms large in the aviation world. It’s a complex web of expenses, decisions, and priorities—enough to make anyone hesitate to dive in. So, let’s simplify it. As you may know, we use the 98 year-old grandmother metaphor to over personify the care, communication, and diligence we go through with our projects.
So here it goes, Grandma: three key areas of aircraft ownership that will undoubtedly impact your wallet— money, money, money.
1. Conservatively Budgeting Operational Costs
Let’s call this one the “fool’s gold” trap. Some flight departments and owners sugarcoat operational expenses, but wishful thinking won’t pay the bills. Go above and beyond when budgeting. Overestimate the costs for annuals, major calendar items, and set aside a “bad day” fund for unexpected maintenance surprises.
To help, we’ve developed the MPR (Maintenance Projection Report)—a proprietary tool that gives clients a detailed roadmap of upcoming maintenance and associated costs. It’s better to overprepare than to be caught off guard.
2. Don’t Step Over a Nickel to Save a Dime
Here’s a scenario we see all too often:
A client asks, “What’s my airplane worth? I’m renewing my insurance and thinking of adjusting the hull value to save on premiums.” While that might seem appealing, they rarely consider increasing liability coverage.
Here’s the thing: undervaluing your aircraft or skimping on liability insurance is a recipe for financial disaster. Always accurately value your aircraft, carry maximum liability coverage, and— yes—just pay the premium. It’s a small price for peace of mind. You don’t want to be in the position where, after a catastrophic event, someone wishes you’d taken this advice.
3. Pay Now or Pay Later
If I had a nickel for every time I said this phrase, I’d be retired on a beach somewhere by now. It’s a universal truth in aviation. Here’s how it applies to you, Grandma:
When you buy the aircraft: Do all the inspections and due diligence thoroughly. Skipping steps now will cost you more down the road.
Throughout ownership: Invest in maintaining the aircraft’s cosmetic condition—buff the paint, apply ceramic coating, replace the carpet. It’s not just about aesthetics; a well-kept aircraft retains value and makes for a better resale price later.
The Bottom Line
Money is a constant in the aviation world, and it pays to handle it wisely. For context, this year alone, we’ve managed over $2 million in maintenance events for our clients. We don’t claim to know it all, but we’ve seen a lot—and we’re here to help and the three principles above are just the beginning.
So, if you (or your 98-year-old grandma) are dancing around the idea of adding a Pilatus to your budget, make sure you’re taken care of.
Happy holidays and safe flying, Bub
MARKET CHANGES IN THE LAST 30 DAYS BY YEAR MODEL
NEW ENTRANTS TO MARKET
1998, 2000, 2002, 2009, 2011,2011, 2012, 2013, 2014, 2014, 2017, 2018 * , 2019, 2021, 2021, 2023, 2023, 2023 * , 2024
17 UNDER CONTRACT
2001, 2006, 2007, 2007, 2008, 2010, 2011, 2012, 2013, 2014, 2015, 2015, 2016, 2018, 2019, 2021, 2024
FROM MARKET
1998, 2008, 2012, 2014, 2015, 2016, 2020, 2020, 2021, 2024
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.
MODEL YEAR
Asking Price By Total Hours
Asking Price By Model Year
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
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.
FLEET LOCATION
PC-12 AND PC-24 AS OF NOVEMBER 2024
NUMBERS
OWNERS UPGRADE FROM THE PC-12NG MORE THAN ANY OTHER AIRCRAFT.
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.
AIRCRAFT ASKING PRICE VS. MODEL YEAR
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–thus generates a commensurate trend curve. This data provides a baseline for our aircraft evaluations.
UNDER CONTRACT FOR SALE
TAPPING THE EXPERTS: FINANCING YOUR PILATUS
Contributors:
Michael J. Smith, President, Scope Aircraft Finance
Chris Graham, Chief Lending Officer, Liberty National Bank
It’s that time of year again when everyone starts thinking about end-of-year taxes and budgeting. If you’re considering financing a Pilatus aircraft, you may have missed your flight this year, but there’s no time like the present to prepare for 2025.
We reached out to Mike Smith, president of Scope Aircraft Finance, and Chris Graham, Chief Lending Officer at Liberty National Bank, for a look behind the curtain and tips to keep your financing smooth sailing. These banks have aviation-specific lending arms and know a thing or two about financing a Pilatus.
Common Hurdles in Pilatus Financing
One common hurdle is a lack of detail in the initial financial package. A complete package smooths the underwriting process. Another is understanding the timeline. It’s crucial to know what to expect and when. Lastly, choosing a specialized lender can make a big difference. “For the same reason a prospect should use JetSwiss for their acquisition, they should also use a specialized lender who understands the word ‘Pilatus’ or ‘FAA security agreement’ or ‘International Registry,’” Smith explains.
Tips to Speed Up the Process
According to Smith, preparation is key. A wellprepared borrower can significantly speed up the process. Clear communication between the borrower and lender is also essential.
Graham believes that a realistic operating budget is crucial. “The cost of the aircraft is just a portion of the affordability.” Understanding the full cost of ownership can help avoid surprises. (Shameless plug: JetSwiss provides aircraftspecific operating cost projections to its clients. Reach out if you’re interested.)
When financing a Pilatus, you may want to ask your lender:
• How many Pilatus deals has the lender closed?
• Who approves the loan?
• What’s the process for payments and selling the aircraft?
This should give you a good idea of how familiar your lender is with this specialized process. Graham mentions “Generally, client’s questions center around rate and terms, but often borrowers are unsure of whether they have considered all the costs.” Providing detailed information about the aircraft can help with valuation. A clear plan for aircraft usage can also expedite the process.
Conclusion
Financing a Pilatus can be a complex process. JetSwiss provides a handful of proprietary reports that can help with the process of valuation and budgeting for operational costs like our Pilatus Appraisal Report (PAR) and our Maintenance Analysis Examination (MAX). By working with a reputable lender and being well-prepared, you can ensure a smooth flight through financing.
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