“What time is it? Gametime!”
I have this stereotypical locker-room hype up speech stuck in my head every year as we approach October. We ask ourselves, as a team: are we prepared for what is to come in the final quarter of the year? Do we have the resources and access to aircraft to provide solutions for clients looking to capitalize on opportunities? Can we deliver clear and concise solutions under the most duress, stressful, and time constrained period of the year? Do we have trusted and vetted industry partners (tax, insurance, escrow, service centers) that we can lean on and trust to take the same level of care we do with our clients? We work year-round to ensure all these characteristics are in place for when gameday arises.
This edition of the Pulse is going to speak to those of you who are looking to make a buy / sell decision in 2025. Whether you are looking to sell and capitalize on fourth quarter activity and pricing, or if you want to acquire an aircraft and place it into service this year for tax reasons, we’ve got you covered. What is the market telling us, where are the opportunities, and how can you avoid a disaster that you may not even see coming?
The vast majority of our readership is based in the United States, so we’ll gear this discussion toward you.
- There are currently 98 PC-12s on the open market.
- We have confirmed that there are at least 14 under contract (there may be more).
- That leaves us with 84 aircraft worldwide.
- Of those, only 37 are based in the United States.
Let’s take this a step further…
- If you want to purchase a /45, you currently have 12 aircraft to choose from.
- For /47 aircraft, there are only 3 available.
- For NG aircraft, there are only 18 available.
- Lastly, if you desire an NGX, your options currently sit at 4 aircraft.
There is not much to choose from when you break it down by variant, and we have not even begun to decipher options based on age, hours, equipment, condition, and price!
So as a buyer, how do you recognize an opportunity and then execute the transaction in this environment?
First, if you’re waiting for an aircraft to hit Controller.com, you’re already behind the 8 ball. There is a very high likelihood that any airplane that hits the open market is either already pending or the seller is looking to create an auction.
Side note: We were notified about an airplane that seemed desirable; however, the seller is inviting all interested parties to come and see the aircraft on the same day and at the same location to submit the best bids. Do you really want to be part of that process? As a current buyer, you must be ahead of the market and engaged with owners who are looking to execute good, clean transactions at fair market prices. Sound familiar? This is our mantra at JetSwiss!
So where are the opportunities? Given the calendar constraints in an end-of-year deal, the low-risk opportunities lie in aircraft that have recently completed an annual inspection or have one already scheduled before Thanksgiving. Another option would be purchasing an aircraft with an agent who has a former DOM of a Pilatus Service Center on staff (wink-wink) who can properly evaluate an aircraft.
Accepting really poor advice and rolling the dice on an aircraft can lead to a large disaster. Let us provide you with another example of a situation that has recently occurred.
There is currently an NGX available in the United States with a rather attractive price associated with it. The ownership of the aircraft has its title held in a non-citizen trust, and the aircraft is U.S. registered. When it was delivered new, the airplane received a customs export and was based in a foreign country. Today, the airplane is physically located in the United States. The agent is telling everyone that the aircraft is in the U.S. legally and, therefore, not subject to a tariff. This is 100% incorrect. This airplane must receive a U.S. customs import which comes with a 39% import tariff. The statute of limitations is 5 years for the government to come knocking and collect. Purchasing this aircraft under the premise that a duty is not applicable could be a $2.5 million mistake.
Whether you are buying or selling a PC-12 this year, our team is prepared and we’re ready to take on the market. We thrive under these conditions and pride ourselves on being able to execute for clients. The thrill of gameday is real and the trust you place in your team to execute is elevated. If you need to take action this year, we invite you to speak with those who have entrusted us in this environment before. Talk with them and ask: Did you win the game?
Fly safe,
The JetSwiss team