History Lesson
Orville Wright made the first flight on the Outer Banks at Kill Devil Hills, North Carolina on December 17th, 1903. In honor of this, President Franklin Roosevelt declared in 1939 that August 19, Orville’s birthday, would be National Aviation Day – an annual occasion to celebrate the importance and development of aviation.
The Story of Pilatus
Interestingly, in the same year that National Aviation Day was declared (1939), deep in the heart of Switzerland, close to Mount Pilatus, a small maintenance facility was started to service the aircraft of the Swiss Air Force. This company from Stans, Nidwalden, would go on to become a respected world leader in aviation, known as Pilatus Aircraft.
Fun fact: When Pilatus was founded, World War II was looming on the horizon. The founders were simply looking for a location as remote as possible and away from the borders. There had to be enough space to build an airplane factory as well as an airfield next to it. As the story goes, initial plans were to build aircraft in the caverns inside the mountain next to the airfield. It was decided that this would take too long, so they took the more conventional route.
Swiss Design at its Finest
The Swiss attention to detail and precision engineering did not stop at watches. When the PC-12 made its debut in 1995, the plan was to deliver just 250 aircraft in the first 10 years–the Swiss culture dictates quality over quantity. Small batch production is a result of pride in craftsmanship. Obviously, the plan did not go accordingly. The 500th PC-12 was delivered in 2004, a little over ten years after the first production year of 1995. In 2010, six years later, the 1,000th PC-12 was delivered.
Today, there are over 2,500 PC-12 aircraft performing worldwide. Even with the unforeseen uptick in deliveries, Pilatus’ ultra conservative, low-risk, and quality-driven business plan, has ensured that demand remains high. Just ask someone today on when they can take delivery of a new Pilatus. The answer is anywhere from two to five years out.
What does all this mean for you?
We can all agree and say that with historically high demand, resale values also remain high. As a prospective consumer or existing owner, here are three simple suggestions for moving forward:
1. Do Your Homework
If you are a potential seller, learn the market landscape. If you’re a potential buyer, learn the market landscape and determine what your Pilatus dollars will get you.
2. Consider the Landmines… and Air-Mines
There are a lot of moving parts at play when buying or selling an aircraft. Contrary to popular belief, it’s nothing like a used car. One detail can be costly. It’s important to know where the landmines are.
3. Make an Expert Decision
There’s an expert for everything. We are the one and only expert in pre-owned Pilatus. Our clients know what they don’t know, and that’s what makes them an expert at decision-making. Leave the Navigating to Us®
And with that, let’s nosedive into the current market!
After a relatively flat June, July showed a serious shift in movement. To state the obvious, the return of 100% Bonus Depreciation has reenergized buyers and sellers who were previously on the sidelines due to uncertainty surrounding the new economic policy.
We are most certainly seeing this shift at our headquarters. July saw nearly three times as many Pilatus aircraft flee the market compared to June. However, prices are steady across the board–a reflection of the consistent residual value and resilient demand of Pilatus aircraft.
For August, we expect continued buzz as buyers act to capitalize on the reinstated depreciation benefits and as sellers work to stay ahead of upcoming fourth-quarter competition. That is not to mention the deliveries of the new Pilatus PRO in Q4 of this year. This will likely bring in a wave of inventory to the market. Current Pilatus owners with 2025 PRO delivery slots will be motivated to sell their existing aircraft (if they have not done so already) and close before year-end!
What’s on your agenda before year-end? We’ll be around, working like busy bees. Give us a call if you have any questions regarding Pilatus.
Until then, fly safe,
Your Friends at JetSwiss Aviation