winter 2014 market update - jetaviva

Owner-Flown Turbine Edition

Winter 2014 • jetAVIVA • 3753 Howard Hughes Parkway #200, Las Vegas, NV 89169 • +1.702.551.2055 • [email protected]

Winter 2014Market Update

Sales • Delivery • Training

Citation Mustang

Phenom 100

Phenom 300

Piper Meridian

Daher-Socata TBM 700/850

Pilatus PC-12

Eclipse 500

Citation CJ4

Citation CJ3

Citation CJ2+

Citation CJ1+

Fall 2013 • jetAVIVA • 3753 Howard Hughes Parkway #200, Las Vegas, NV 89169 • +1.702.551.2055 • [email protected]

Winter 2014 Market Update: Owner-Flown Turbine Edition


Table of Contents

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Citation Mustang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Citation M2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Citation CJ1+ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Citation CJ2+. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Citation CJ3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Citation CJ4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Phenom 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Phenom 300 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Eclipse 500 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Light Jet Liquidity Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

jetAVIVA Light Jet Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12

Piper Meridian. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Daher-Socata TBM 700 & 850 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Pilatus PC-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Single Engine Turboprop Liquidity Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

jetAVIVA Turboprop Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17


1

IntroductionDear Reader,

Another year down, another exciting one ahead of us. With 2013

now in our rear-view mirror, we’ve had time to reflect on the ups

and downs and what we saw as driving factors in the current

market conditions. jetAVIVA saw our best year in sales last year to

date—both in transaction volume and gross revenue. With the Dow

Jones Industrial Average trading at over 16,000 points, principals

are starting to feel more and more confident about their financial

positions and asset value integrity.

As we had anticipated from our Fall 2013 Market Update, the end

of 2013 brought a flurry of transactions industry-wide, and helped

clear out some aging inventory. The markets, in general, have

become much more balanced in terms of supply vs. demand, and

we see them shifting to seller markets in several segments.

In other exciting recent news, our company accepted several

new Citation M2 deliveries on behalf of our clients in December

2013, and that jet is everything we hoped it would be. First factory

deliveries just started in mid-December, 2013. Standard equipped

with new Williams FJ44 engines and the new Garmin G3000 flight

deck, we’re sure this machine will provide a seamless transition

path for current CJ and Mustang owners, among many others.

To help handle what we foresee being a very busy year ahead of

us, jetAVIVA has recently added two new team members. Jade

Duckart, who joined as our Sales Associate for our Citation Team,

comes to us with a wide array of skills and abilities, and knows

Cessna products inside and out. Most recently, Doug Bornstein

joined our team as our TBM specialist. Doug has a wealth of

knowledge in everything aviation related, and is a seasoned TBM

owner, pilot, and salesman.

Moving steadily into 2014, we’re looking forward to more exciting

product announcements from some of the major players and a

continuing decrease in pre-owned inventory attached to a firming

with prices. The above relative “return to normalcy” brings with it

a sense of calm that consumers and stakeholders alike have long

waited for.

Blue skies,

Cyrus Sigari — CEO, jetAVIVA

The jetAVIVA Team

Ben Marcus Co-founder

Cyrus Sigari Co-founder

Greg Oswald VP, Phenom Market

David Lee VP, Mustang Market

Doug Bornstein VP, TBM Market

Andrew Gallagher Manager, Sales Operations

Justin Beitler Senior Sales Associate

Jade Duckart Senior Sales Associate

Marcio Lucchese Manager, Phenom Acceptance & Delivery Services

Scott Horton General Counsel

Derrick Schmidt Director of Maintenance & Technical Services

Brian Singer Controller

Michelle D’Ambra Office Manager

About jetAVIVA

jetAVIVA provides unmatched

expertise and client focus to those

purchasing and selling owner-flown

turbine aircraft. From cutting edge

aircraft marketing techniques to

aircraft training, acquisition, and

technical evaluation, only jetAVIVA

has the knowledge, understanding

and breadth of experience to

perfectly match the exact turbine

aircraft with the mission requirements

of today’s owner/operator.


Winter 2014 • jetAVIVA • 3753 Howard Hughes Parkway #200, Las Vegas, NV 89169 • +1.702.551.2055 • [email protected] Winter 2014 • jetAVIVA • 3753 Howard Hughes Parkway #200, Las Vegas, NV 89169 • +1.702.551.2055 • [email protected]

2

CessnaAs we review the Citation market, we continue to see bright spots that we haven’t seen in a long, long time. For the first time since 2008, the number of Citations for sale listed on Controller.com has dropped below the 500 aircraft mark. This number was as high as 700 at one point, showing a significant change in the inventory landscape. This constriction in inventory is making it more and more difficult to find high-pedigree, low time, pre-owned units, leading way to continued pricing firming.

With the factory having significantly reduced the outflow of new production over recent months, the pre-owned market has had some time to enjoy the pressure relief and experience non-cyclical firming of the market.

Important to note is Textron’s (parent company of Cessna) recent announcement of the pending purchase of the Beechcraft corporation. Textron has yet to announce with their go forward plan will be with Beechcraft, however this addition to the Textron portfolio may have some interesting impacts on the Citation product line moving forward.

Mustang

To start off the Citation market discussion, we start with the Mustang. At the end of last quarter we reported 25 Mustangs for sale out of the 450 built, and today we are reporting approximately the same amount for sale inventory with 28 units for sale representing approximately 6% of the in service fleet for sale and down from over 9% this time last year. A total of 10 pre-owned Mustangs traded hands in Q4 and six new Mustangs were delivered to end-users. Average pricing has remained relatively unaffected over the past three quarters, hovering in the high $1M mark to the low $2Ms. We see several factors affecting price, but of the most notable are age, hours, program enrollment status, and overall pedigree.

We attribute the slight increase in inventory quarter over quarter primarily as a result of the first M2s being delivered from Cessna to owners who owned Mustangs. Moving into 2014 we anticipate seeing a net increase in available Mustang inventory, as many current Mustang owners are M2 position holders, but a decrease in new aircraft being built, likely normalizing the influx.

Citation Mustang: 6% For Sale

Mustang: Average Value

Citation Mustang: Winter 2014 MarketUsed Aircraft Listings 28

Total Fleet 445

Percent of Fleet for Sale 6.3%

Low Ask Price (US Dollars) $1,625,000

Average Ask Price (US Dollars) $2,100,000

Average Airframe Total Time 829

Average Days on Market 254

Pre-Owned Transactions (2013) 50

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M2

The first retail deliveries of the Citation M2 began at the end of December with Cessna delivering over a dozen M2s to their new owners. This marks the beginning of a new era for the 525 model Citation, as the M2 is a highly upgraded version of the refined 525 with a Garmin G3000 cockpit, upgraded interior, winglets, and increased thrust marking the M2 an incremental, yet distinguished upgrade from its predecessor,

the CJ1+. There has been little position trading as of yet for the $4.5M Citation, but as first deliveries have begun we expect to see buyers anxious to move to the front of the line. Our firm took delivery of the four of the first M2s delivered on behalf of our Clients and have enjoyed the experience. Look out for jetAVIVA’s CEO, Cyrus Sigari’s pilot report on the M2 being published in the upcoming issue of AOPA Pilot.

CJ1+

The CJ1+ market has experienced a surprising uptick in activity over the last quarter. In the CJ1+ market, the first three quarters of the year resulted in a bit of a stack up of inventory with 15% of the fleet now for sale. Current CJ1+ inventory is down under 12% for sale. It is likely that the arrival of the M2 may have had a net positive impact

on the CJ1+, bringing market attention back to the CJ1+ as a relatively high value purchase. Pricing for the CJ1+ continues from last quarter with units trading in the mid-$2Ms to high $2Ms depending on pedigree. There is an average of one CJ1+ trading each month.

Citation CJ/CJ1/CJ1+: Winter 2014 MarketCJ CJ1 CJ1+

Used Aircraft Listings 59 25 12

Total Fleet 352 197 102

Percent of Fleet for Sale 16.8% 12.7% 11.8%

Low Ask Price (US Dollars) $840,000 $1,300,000 $2,400,000

Average Ask Price (US Dollars) $1,300,000 $2,100,000 $2,700,000

Average Airframe Total Time 4,044 2,638 900

Average Days on Market 323 314 273

Pre-Owned Transactions (2013) 48 35 13

Citation CJ: 17% For Sale

Citation CJ1: 13% For Sale

Citation CJ1+: 12% For Sale

CJ/CJ1/CJ1+: Average Value

Q4

2013



4

CJ2+

The CJ2+ market has stayed relatively consistent over the last few quarters with just 16 units out of the 225 units built up for sale, down from 18 units last quarter. Approximately half of the CJ2+s that are for sale are in non-USA markets. The majority of

the non-USA aircraft for sale are based in Europe. In general we are seeing CJ2+s trading in the high $3M to low $4M range. With the limited number of new aircraft coming to market, we see the CJ2+ continuing to be bolstered.


Citation CJ2+: 7% For Sale

CJ2/CJ2+: Average Value

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Citation CJ2/CJ2+: Winter 2014 MarketCJ2 CJ2+

Used Aircraft Listings 24 16

Total Fleet 238 220

Percent of Fleet for Sale 10.1% 7.3%

Low Ask Price (US Dollars) $2,495,000 $3,900,000

Average Ask Price (US Dollars) $3,000,000 $4,400,000

Average Airframe Total Time 2,861 1,059

Average Days on Market 493 291

Pre-Owned Transactions (2013) 32 18

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CJ3

The CJ3 market has remained relatively stable, with a consistent amount of inventory available from Q3 to Q4. Demand for lightly use, low-time pre-owned units continue to increase, and supply in that quadrant of the inventory matrix continues to dwindle. CJ3s are trading form the low $4Ms to low $5Ms.

We believe that the CJ3 continues to represent be the best value in the single pilot owner-flown pre-owned space. Why? 417 knots, FL450 capability, seating for up to 10 occupants, efficient fuel burns, and 1800 mile + range is without question the best bang for the buck available for $5M or less.


CJ3: Average Value

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Citation CJ3: Winter 2014 MarketUsed Aircraft Listings 28

Total Fleet 406




Average Airframe Total Time 1,552



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CJ4

The CJ4 pre-owned market continues to take shape with just six units for sale out of the 140 units built thus far. With the CJ4 being the largest, fastest of the single pilot Citations, there isn’t a clear upgrade path for these operators, reducing the likelihood of current CJ4 owners migrating out of their birds.

We have seen just a handful of CJ4s trade hands since first production, with prices in the high $6M to low $7M range. These low transactions volumes are typical in the first couple of years after a model’s introduction.


New CJ4 Deliveries By Quarter

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2013

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Citation CJ4: Winter 2014 MarketUsed Aircraft Listings 6

Total Fleet 144






OEM Deliveries (2013) 29


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Embraer Phenom

The Phenom market remains healthy, with an honest balance of supply and demand for pre-owned aircraft. Embraer continues to innovate improvements to both the Phenom 100 & 300. For example, ground spoilers will be standard on Phenom 100s

delivering in 2014. Embraer is also introducing 11 new interior color schemes and improved, articulating seats for new 100s. Deliveries of G3000 Prodigy Touch Phenom 300s have now begun, not just for NetJets, but also for individual customers.

Phenom 100

In 2013, Europe continued to be a net exporter for used Phenom 100s, with many opportunities for American buyers to purchase reduced price aircraft. As the European economy begins to stabilize, we anticipate that a strengthening Euro and strengthening European equity market will begin to reduce the number of aggressively priced Phenom 100s coming out of Europe in 2014. This is good news for all Phenom owners, but perhaps not such great news for prospective Phenom 100 purchasers. The Brazilian economy is a little uncertain these days,

and we’re seeing more Brazilian Phenom 100s coming to market, although we don’t anticipate that these will reach a global market in 2014, as prices remain high due to high taxes paid when nationalizing an aircraft on Brazil. Phenom 100 prices are generally in the mid $2Ms for 2009s, mid to high $2Ms for 2010s, high $2Ms to low $3Ms for 2011s, low to mid $3Ms for 2012s, and mid to high $3Ms for 2013s. There are large variances in optional equipment, maintenance program enrollments, aircraft condition, and so forth, which of course affect value of a specific aircraft.

Phenom 100: 6% For Sale

Phenom 100: Average Value

Q4

2013

Embraer Phenom 100: Winter 2014 MarketUsed Aircraft Listings 21

Total Fleet 300







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Phenom 300

Pre-owned Phenom 300s were hard to come by in 2013 but we think they will become more abundant in 2014. It is very rare to find a Phenom 300 owner that doesn’t absolutely love his or her airplane, but many of them are starting to get itchy for the next step. We’ve spoken with several owners who intend on buying another new Phenom 300 this year, perhaps with upgraded options like G3000 Prodigy Touch or a side-facing divan. They will have to make room in their hangars, so the previous 300

will be sold. Also, many existing Phenom 300s are preparing to take delivery of a new Legacy 450 or 500. It’s difficult to tell where prices will shake out this year, but our expectation is that 2010s will sell in the low to mid $6Ms, 2011s in the high $6Ms to low $7Ms, 2012s mid to high $7Ms, and 2013s high $7Ms to low $8Ms. Again, with so much variation between airplanes, it’s best to give us a call for our opinion on a specific serial number.

Phenom 300: 5% For Sale

Phenom 300: Average Value

Q4

2013

Embraer Phenom 300: Winter 2014 MarketUsed Aircraft Listings 6

Total Fleet 178







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Eclipse 500

Eclipse values have remained relatively unchanged for the last quarter of 2013, providing evidence that the Eclipse market is showing signs of healthy improvement. Over recent years, the Eclipse market has been bombarded by unique challenges, one of which has been a highly variable fleet causing confusion over aircraft values. More recently, however a renewed effort by Eclipse Aerospace to eliminate “legacy” aircraft has helped bolster a more consistent and stable market place. Values for non-legacy aircraft remain strong, while the available for-sale inventory declined sharply in the 4th quarter of 2013, possibly a reflection of increased satisfaction and ultimately increased demand for the Eclipse 500.

As we reported in our Fall Market Updates, the Eclipse 500 market is comprised of submarkets determined mainly by the installed avionics versions. Values have remained relatively

stable since our last report, with Avio version 1.7 aircraft trading hands between $1M to $1.2M, IFMS equipped aircraft selling for between $1.4M and $1.6M, and Total Eclipse aircraft available for $1.5M and above depending upon the specifics of options, hours, and pedigree.

As we look forward into 2014, we anticipate several factors—some of which are competing forces—to drive Eclipse 500 values and the market as a whole. While we expect to see upward pressure as legacy aircraft are eliminated (upgraded), any slip in Eclipse 550 production schedules could have a negative effect on consumer confidence. Overall, however, we expect Eclipse values to remain stable, with normal market depreciation resulting in trends familiar to any aircraft buyer.

Eclipse 500: 11% For Sale

Eclipse 500: Average Value

Q4

2013

Eclipse 500: Winter 2014 MarketAll Eclipse Models

Used Aircraft Listings 30

Total Fleet 263


Low Ask Price (US Dollars) $395,000





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Light Jet – Percent of Fleet for Sale

Light Jet – Percent of Fleet Sold 2013

Light Jet – Liquidity Index 2013

Light Jet Liquidity Index

jetAVIVA created the Liquidity

Index as an informative tool. This

measure of relative “liquidity” for

a particular aircraft provides one

indication of a markets direction.

In other words, looking at recent

sales in comparison to the number

of sellers is an indicator of supply,

demand and subsequently pricing.

This is typically correlated to how

quickly and how much an aircraft

can sell for, independent of all

other factors. By no means is this

the only factor one should consider

when transacting in any market.

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Light Jet Inventory Currently for Sale by jetAVIVA

Visit our website at www.jetAVIVA.com for additional details, photos, and videos.

2010 Cessna Citation CJ4 SN 525C–0002

Total Time: 1,180 Hours

Details: Single Owner – Dual FMS – Two place forward Divan – Flawless Paint & Interior – Professionally flown

2014 Cessna Citation M2 SN 525–TBD

Total Time: New

Details: Q1 2014 Delivery Position Available! Call for details and contract pricing.

2006 Cessna Citation CJ1+ SN 525–0609


Details: Mark VIII EGPWS – TAP Elite – ProParts Jepp Charts – HF Provisions – No Damage History

2009 Embraer Phenom 100

SN 500-00015

Total Time: 600 Hours

Details: Two owners since new – California based – G1000 Dual Mode S Transponders – Radar – Premium Pax door

2014 Embraer Phenom 300 SN 505–TBD

Total Time: New

Details: August 2014 Delivery Position Available with Garmin G3000! Call for details.

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http://www.jetAVIVA.com



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2013 Cessna Citation Mustang SN 510–0431


Details: Single Owner – High Sierra Edition – Full Factory Warranties – PowerAdvantage+ – No Damage History



Details: Immaculate Condition – All ProAdvantage Programs – SVT – TCAS – XM Radio No Damage History

Light Jet Inventory Currently for Sale by jetAVIVA

Visit our website at www.jetAVIVA.com for additional details, photos, and videos.



Details: Still Like–new – PowerAdvantage – TCAS XM Radio – No Damage History – Single owner

1993 Cessna Citation V SN 560–0225


Details: Refurbished V with AdViz Glass Cockpit – 10 seats – Increased MGTOW Mid life engines



Details: Brand New Paint – All ProAdvantage Programs SVT – TCAS – XM Radio – No Damage History

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Piper Meridian

The market for the Meridian has proven to be quite liquid, with 95 aircraft—over 18% of the total fleet—changing hands in 2013. Compare this to 2012 numbers in which roughly 17% of the fleet transacted, or 83 transactions. The Meridian on-market inventory level presently sits at a healthy 8% of the active fleet, which matches the levels from Fall 2013.

The current production model of the Meridian features the Garmin G1000 among some other interior enhancements. In addition to factory new deliveries, there were 14 pre-owned G1000 Meridians change hands 2013, representing over 10% of the G1000 fleet. Just over 7% of the G1000 active fleet is for sale right now, which is up slightly from Q1 2013. Average selling prices have varied between the mid $1.4Ms to the high $1.8Ms, depending mostly on age and hours.

The Avidyne Entegra-equipped Meridian market—those produced from 2006-2009—sits presently with 8% of the active fleet of

Avidyne Meridians for sale. The average prices remained fairly flat throughout 2013, hovering in the $1.0M to low $1.3Ms range, depending on age, hours, and pedigree. A total of 38 Avidyne Meridians sold last year.

As a bit of a change of pace, the first generation Meridians—2001 to 2005 models—have proven most active of the three segments. The on market inventory levels sit at just over 7%, which is down from over 11% in Q3 2013. Over 21% of the first-gen Meridian fleet transacted in 2013—43 total deals were made. Pricing varies much more in this segment as there is more variation in equipment, especially in avionics. Many of the planes sold in this segment had retrofitted panels, which is likely a reason so many planes traded hands. Average sale prices for first-gen non-retrofitted Meridians ranged from the mid-$600,000 to $900,000 range.

Meridian: Winter 2014 MarketAll Meridian Meggitt Avidyne G1000

Used Aircraft Listings 40 15 15 10

Total Fleet 516 201 179 136

Percent of Fleet for Sale 7.8% 7.5% 8.4% 7.4%

Low Ask Price (US Dollars) $630,000 $630,000 $1,000,000 $1,575,000

Average Ask Price (US Dollars) $1,211,640 $835,000 $1,216,000 $1,742,000

Average Airframe Total Time 1,055 1,617 958 281

Average Days on Market 165 270 134 90

Pre-Owned Transactions (2013) 95 43 38 14

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Meridian Total: 8% For Sale

Meggitt Equipped: 7% For Sale

Avidyne Equipped: 8% For Sale

G1000 Equipped: 7% For Sale

Meridian: Average Value

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Daher-Socata TBM 700 & 850

TBM owners enjoyed a lively market in 2013 with over 12% of the combined fleet having transacted during the year. The TBM sits squarely between the Meridian and PC-12 in terms of size, performance, and utility, and remains largely without competition in its own market segment. The latest production model—the TBM 850 Elite—is selling on par with 2012 transaction numbers, though many anticipate changes to the TBM 850 are coming this year from Daher-Socata. We’ll hope to report more on this in our upcoming Market Updates.

The G1000-equipped TBM 850 fleet has continued to grow, and the transaction numbers have kept up: 20 total 850G machines sold in 2013. The TBM 850 “Legacy” models—those with the Bendix/King EFIS suite—have the smallest fleet size of all the TBM models, but it was the most active with over 18% of that fleet having transacted in 2013. The average pricing for 850L models has hovered between the high $1.7Ms and the $2.0M mark, mainly depending on time, pedigree, and avionics upgrades. For the G1000 850 models,

values have been on a slow decline as that fleet continues to age and depreciate from new pricing. Pricing is in the mid-$2M to $3M range, with variation depending mostly on age, pedigree, and hours.

The TBM 700 market has continued to be “chased down” by the lower end of the 850 market, but nearly 13% of the combined 700 market still sold in 2013. The inventory levels of the combined A, B, and C2 fleets also dropped from approximately 9.5% to 8.5% over the past year. A retail buyer should be able to pick up an average A or B model for around $900,000 to $1.3M, while a C2 in similar condition would run in the mid $1.4Ms to the around the $1.6M mark. There is much more variation in equipment, hours, and pedigree in the 700 models (compared to the 850’s), so there have been outliers on both ends of these pricing spectrums.

Socata TBM: Winter 2014 Market700A/B 700C2 800L 850G

Used Aircraft Listings 17 8 10 11

Total Fleet 199 98 87 232

Percent of Fleet for Sale 8.5% 8.2% 11.5% 4.7%

Average Ask Price (US Dollars) $1,161,250 $1,662,800 $1,944,000 $2,574,000

Average Airframe Total Time 2,526 1,620 1,442 755

Average Days on Market 328 117 107 110

Pre-Owned Transactions (2013) 23 15 16 20

TBM 700C2: 8% For Sale

TBM 850 Legacy: 11% For Sale

TBM 850 G1000: 5% For Sale

Socata TBM: Average Value

TBM 700A/B: 9% For Sale

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Pilatus PC-12

2013 was yet another banner year for Pilatus owners and operators; values remained high and inventories low as demand outstripped supply. Over 40 new PC-12’s were delivered in 2013, and we estimate that demand exceeded that supply by as much as 30%. With no where else to go, buyers looked to the pre-owned market and paid near full asking price for late-model, pre-owned aircraft.

The pool of available, on-market, aircraft remains at a remarkably low 3.0% of the fleet. With such a small pool, we found it important to look at median, rather than mean, statistics to get a more accurate look at market information. In a pool size this small, influential outliers can dramatically skew the trend lines.

Looking at each of the sub-markets in the PC-12 fleet, we see that the “dash 45 legacy” has remained very stable with 21 of the 568 aircraft for sale (3.7%) which is identical to our prior

report. The dash 47 fleet of 202 aircraft has only 4 aircraft for sale – < 2.0%, and the 47E, or “NG”, fleet of 422 aircraft has only 10 aircraft, or 2.4% for sale.

The NG aircraft had some notable improvements and retrofits for 2013 that have dramatically improved the owner experience, including Synthetic Vision and the Connected Flight Deck. The Connected Flight Deck dramatically improves the method in updating system data by utilizing a series of portable devise apps and a wireless processes.

We see the Pilatus market continuing to be very strong in 2014 with demand continuing to outpace supply. Current owners tend to “buy and hold” the aircraft, and we suspect that trend will continue until the PC-24 Jet deliveries begin, which will provide a logical next-step for operators.

Pilatus: Winter 2014 MarketPC-12 PC-12 47 PC-12NG

Used Aircraft Listings 21 4 10

Total Fleet 568 202 422

Percent of Fleet for Sale 3.7% 2.0% 2.4%

Low Ask Price (US Dollars) $1,650,000 $2,750,000 $3,350,000

Average Ask Price (US Dollars) $2,145,000 $2,816,000 $3,640,000

Average Airframe Total Time 4,127 2,097 859

Average Days on Market 129 96 63

Pre-Owned Transactions (2013) 49 18 22

PC-12 45: 4% For Sale

PC-12 47: 2% For Sale

PC-12NG: 2% For Sale

Pilatus: Average Value

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Single Turboprop – Percent of Fleet Sold 2013 Single Turboprop – Liquidity Index 2013

Single Engine Turboprop Liquidity Index

jetAVIVA created the Liquidity Index as an informative

tool. This measure of relative “liquidity” for a particular

aircraft provides one indication of a markets direction.

In other words, looking at recent sales in comparison to

the number of sellers is an indicator of supply, demand

and subsequently pricing. This is typically correlated

to how quickly and how much an aircraft can sell for,

independent of all other factors. By no means is this

the only factor one should consider when transacting

in any market.

Single Turboprop – Percent of Fleet for Sale

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Turboprop Inventory Currently for Sale by jetAVIVAVisit our website at www.jetAVIVA.com for additional details, photos, and videos.

2008 Daher–Socata TBM 850

SN 473


Details: Single owner – Socata Service Center Maintained – G1000 – SVT – TCAS – Enrolled in NMP Maintenance Program

2013 Piper Meridian SN 4697511


Details: Like new in every respect – Fresh 2014 Annual Completed – G1000 – SVT – TCAS – “Dune” Leather Interior

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Sales • Delivery • Training

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Sources: AMSTAT, JetNet, Aircraft Blue Book, UBS Market Research, JPMorgan, jetAVIVA Research Team. Cover photo courtesy of Jessica Ambats.

winter 2014 market update - jetaviva

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