It is always interesting to look back on the year that was just completed and evaluate it against previous years. We will be the first ones to admit when we were incorrect in our predictions. Early in the year, our data suggested that the number of transactions would be less than in 2022. That prediction held true. We were expecting to see around 100 preowned transactions in 2023. The numbers are still trickling in, but it appears we will have around 120 worldwide preowned transactions. For reference, there were 132 in 2022 and 139 in 2021 and 116 in 2020. This level of activity was certainly welcomed. The list of factors that affect our market is long: volatility of the insurance markets, increase in interest rates, consumer confidence, taxes, elections, pilot shortages, pre-buy facilities/scheduling, etc. However, this all had less of an impact on the number of transactions than we predicted. While we won’t say the Pilatus is recession-proof, it’s as close as any airplane could be. The demand for the product continues to surpass expectations and thus creates a stable marketplace and healthy residual value. We can predict this to be true in the future as well—not a big stretch here…
Of the 120 world-wide transactions, North America was the predominant buyer for a pre-owned Pilatus, capturing 103 out of the 120 aircraft deliveries. That’s 86% of the market! 2023 was also the year inventory levels finally recovered (or “returned to” levels) from the COVID run on airplanes. The market availability went from approximately 1% of the fleet for sale to 4%. This has helped create a balance between buyers and sellers. Last year also saw values stabilize. From 2020 to early 2023, preowned prices jumped nearly 35% across the board. Since Q1 of 2023, we’ve seen a 4 to 8% overall drop in value, depending on the model variant and year. The pendulum has not completely shifted to a “buyer’s” market yet—at least not with the data we’ve seen. Think “balanced and healthy” on this topic.
As we look forward to what 2024 will bring, there are several things we will be encouraging our sellers to consider. First, gone are the days of posting an airplane to Controller.com and it sells for a premium price with little to no diligence. Second, if you’re considering selling, now is a great time to take care of those minor cosmetic ‘warts’ that no longer bother you but will catch the eye of a buyer (see our back page feature). Lastly, if you’re planning on selling in 2024, it’s a great idea to schedule an annual inspection with your preferred service center now. Schedule this inspection for the month you plan to sell your airplane. It is a great opportunity for a potential buyer to use your inspection as their pre-buy yet have control of the process. Having this inspection on the docket will play favorably with any potential suitor.
These updates and maintenance tasks will help your aircraft move to the top of buyer’s lists. At JetSwiss, we have the resources to quickly and efficiently manage these topics and utilize them to generate top dollar for your aircraft.
Fly Safe,
Scott Glenn,
Director of Sales
A.K.A. the “Data Doctor” (He loves it when we call him this.)