What I love about competition golf is it’s just you and the golf course. You cannot control what another player does, what the weather might be doing, course conditions, etc. There are only a few controllable factors for a player which include your preparation, mid-round adjustments, and the space 6 inches wide between your ears, your mindset. A tournament round usually starts off with first-tee nerves, adrenaline pumping, and potentially a lot of effort in order to get the round started off properly. Usually, by the third or fourth hole, you know what your game looks like that day, and you start to settle into the round.
The Pilatus market is starting to settle into the round.
Inventory levels and nestled in. We started the year in the low 30’s and have been hovering around 50 airplanes for sale in the last two months. Pricing is no longer on the rise, but major drop-offs have not occurred either. Sale price data will suggest the market peaked in Q3 2022 when PC-12s averaged 110-115% of their new price. That number is now averaging around 105%. Transaction data suggests activity is picking back up after a very quiet Q1 and start to Q2. Only 8 airplanes sold in Q1. That number has doubled in Q2, and we still have a month to go. The new normal has been set. Buyers and Sellers are starting to get a sense of what the market conditions look like and there is enough confidence moving forward they’re able to make sound buying and selling decisions.
As we look ahead to the remainder of 2023, we are having discussions with our clients about preparing for what the marketplace will look like. More and more, it is evidently clear that buyers want turnkey solutions. If there are aspects of an airplane that need to be dealt with, that’s okay, just as long are the homework is done and a plan is in place. There will certainly be some adjustments that must take place. No game plan is perfect, we’ll have to react to the worldwide landscape. There are always political implications for our industry, and we’ll react accordingly to place our clients in the best position possible. Continuously looking at pricing dynamics, aftermarket upgrades, and various demand factors, allows us to adapt to the changing landscape. Lastly, through publications like this, aircraft evaluations, and detailed discussions with our clients, we are able to get those decision-makers in the right mindset to be successful. Setting proper expectations and telling our clients the truth allows them to make informed decisions and delivers rewarding results.
All of 2022 was like standing on that first tee trying to pipe a drive down the middle of the fairway with the next group waiting in the wings and the beverage cart barreling down the cart path. It was a chaotic environment; we were left standing there trying to remain in the “zone.” We watched some shots get nailed down the middle, others soared out of bounds. It was a wild ride for the preowned airplane industry as a whole. Rolling into 2023 was like coming off the first green with all craziness of the first hole behind us now there is not anyone in sight. We’ve now eased into the round and the goal is to make a lot of pars and birdies while limiting the bogies. Being prepared, making slight adjustments, and having a good mindset will carry us through the rest of the round… I mean year.
Fly Safe,
Scott Glenn