Did you see the announcement?! Of course you did. If you’re reading this publication, we know you’re an avid Pilatus enthusiast and certainly following the latest news coming from Stans, Switzerland. At JetSwiss, we have been fielding two different questions from customers, prospects, and colleagues alike. 1) What impact will the PRO have on the pre-owned market? 2) What impact will the current tariffs have on the pre-owned market? These are two very legitimate questions and certainly ones that everyone is curious about.
What impact will the PC-12 PRO have on the current PC-12 market?
Understanding basic economics, we can deduce that the PRO will have a positive impact on existing PC-12 values. Anytime there is demand for a new airplane, especially with a 3+ year backlog, it will stimulate activity on the pre-owned side. This coupled with the significant price increase should lead to a stabilization of pre-owned values. As we all know, Pilatus does not overproduce or discount the airplane. This has been the backbone of a stable pre-owned market and the addition of the PRO will continue that trend.
Second, what impact will the tariffs have on the pre-owned market?
This remains a bit of an unknown. Our team has been in constant communication with our customs broker, following NBAA’s guidance, and reviewing CBP (Customs Border Patrol) releases so we stay on top of this topic. As it sits today, all Pilatus aircraft imported into the United States will be subject to 10% tariff. There was a brief 31% reciprocal tariff on Swiss produced products at one point. However, there is currently a 90 day pause on that duty (clock is already running). Where this goes moving forward remains a mystery. What does this mean if you own a Pilatus and it’s based in the Untied States? If you’re selling, you can likely eliminate foreign aircraft from your competition. Buyer’s will be less likely to search overseas for potential acquisitions. This will stimulate domestic activity and foster pricing integrity.
It remains a great time to buy and sell. As we’ve been saying for several months, the market is healthy and balanced. There is a good amount of inventory available and prices have flatlined. With the potential that 100% bonus tax depreciation will return, PRO deliveries on the horizon, and strong domestic activity, our team remains bullish on the market and the remainder of 2025.
Fly Safe,
The JetSwiss Team