Light BIZPLANE Market OUTLOOK by Cyrus Sigari

in available Mustang inventory to high $2 millions, depending efficient fuel burn and 1,800 as many current Mustang own- on pedigree. An average of one mile+ range is without question Preowned jets, tprops ers are M2 position holders. CJ1+ is trading each month. the best bang for the buck available for $5 million or less. Citation M2 Citation CJ2+ show market strength The first retail delivery of The CJ2+ market has stayed Citation CJ4 The annual NBAA convention routinely serves as an appropriate time to the Citation M2 is set to occur relatively consistent over the last The CJ4 pre-owned market reflect on activity in the pre-owned market for both light jets and single- in mid-October. This marks the few quarters with just 18 units has firmed up over the last few beginning of a new era for the for sale of the 225 built. Approx- quarters with just five units for engine turboprops. As we look back at the year that has passed, it’s fair 525 model Citation, as the M2 imately half of the CJ2+s that sale out of the 120 units built to say that while these markets have not set any blistering records, some is a highly upgraded version of are for sale are in non-U.S. mar- thus far. With the CJ4 being the calm is in the air. With the stock market fluctuating at an all-time high, the refined 525 with a Garmin kets, with the majority based in largest and fastest of the sin- there is some subdued enthusiasm bringing buyers and sellers together in G3000 flight deck, upgraded Europe. In general CJ2+s are gle-pilot Citations, there isn’t interior, winglets and increased trading in the high $3 million to a clear upgrade path for these such a way as to provide long-needed liquidity to the market. thrust, marking the M2 as an low $4 million range. With the operators, reducing the likeli- incremental, yet significant limited number of new aircraft hood of current CJ4 owners in the second and third quar- upgrade from its predecessor, coming to market, we see the migrating out of their birds. We Light Jets ters. This healthy activity, com- the CJ1+. There has been little CJ2+ continuing to strengthen. have seen just a handful of CJ4s pounded by fewer Mustangs position trading as yet for the trade hands since first produc- Cessna Citation Mustang being brought to the market, has $4.5 million Citation M2, but as Citation CJ3 tion, with prices in the high $6 At the end of the second quar- created a net decrease in overall first deliveries begin we expect The CJ3 market has picked million to low $7 million range. ter of 2013, of the 430 Mustangs inventory. to see buyers eager to move to up in the last quarter with a These low transactions volumes built there were 37 for sale. Now Average pricing has remained the front of the line. stark reduction in pre-owned are typical in the first couple there has been nearly a 35 percent relatively unaffected over the inventory, with just 20 units for of years after a model’s intro- drop in for-sale inventory to just past two quarters this year, Citation CJ1+ sale of the 400+ built, at 5 per- duction, though, as production 25 units, representing approxi- hovering in the high $1 million In the CJ1+ market, the first cent for the CJ3 market. Pre- ramps up and owners enjoy fly- mately 6 percent of the in-service mark to the low $2 millions. three quarters of the year have owned CJ3s are trading between ing their new airplanes. fleet, down from more than 9 per- We see several factors affecting seen a bit of a stack up of inven- the low $4 millions to the mid $5 cent this time last year. A total of price, but the most notable are tory, with 15 percent of the fleet millions, depending on pedigree. Embraer Phenom 100 39 Mustangs have traded hands age, hours, program enrollment now for sale. Most of the new We believe that the CJ3 contin- The Phenom 100 market year to date, and while nearly half status and overall pedigree. inventory that has come to the ues to represent be the best value continues to be very strong. of these transactions occurred in As we get closer to first market is directly related to air- in the single-pilot, owner-flown, With an even further tightening the first three months of the year, Citation M2 deliveries in late craft owners stepping up to larger pre-owned space. Why? The 417- of supply, values have not only an average of four to five aircraft October and November, we Citations. Pricing for the CJ1+ knot cruise, FL450 capability, remained consistent, but have have traded hands every month anticipate seeing a net increase ranges from the mid-$2 millions seating for up to 10 occupants, Continued on page 90 u

Citation CJ/CJ1/CJ1+: Fall 2013 Market Cessna Citation Mustang Citation Mustang: Fall 2013 Market Cessna Citation CJ1 CJ CJ1 CJ1+ Used Aircraft Listings 25 Used Aircraft Listings 54 28 15 Total Fleet 437 Total Fleet 352 197 102 Percent of Fleet for Sale 5.7% Percent of Fleet for Sale 15.3% 14.2% 14.7% Low Ask Price (US Dollars) $1,775,000 Low Ask Price (US Dollars) $695,000 $1,300,000 $2,650,000 Average Ask Price (US Dollars) $1,382,222 $2,019,091 $3,000,000 Average Ask Price (US Dollars) $2,238,000 Average Airframe Total Time 3,610 2,556 792

Average Airframe Total Time 690 Average Days on Market 351 193 224 www.ainonline.com Average Days on Market 128 Pre-Owned Transactions (YTD 2013) 32 25 8 Pre-Owned Transactions (YTD 2013) 39 Citation CJ: Citation CJ1: Citation CJ1+: CJ1+: Average Value 15% For Sale 14% For Sale 15% For Sale Mustang: Average Value

Citation Mustang: Citation CJ: Citation CJ1: Citation CJ1+: 6% For Sale 15% For Sale 14% For Sale 15% For Sale

88 NBAA Convention News • October 22, 2013 • www.ainonline.com Light Bizplane Market Outlook uContinued from page 88 recently started to show signs of during the second and third Phenom 300 Eclipse version of the 500 air- a possible increase. quarters of 2013. frame, which is a factory-cer- Turboprops There are currently 18 In the past two months, at The Phenom 300 contin- tified, pre-owned 500 airframe Phenom 100s listed for sale, least three Phenom 100 owners ues to be a highly sought-after with full warranties, updated Piper Meridian which represents less than accepted offers within 30 days jet, offering range and passen- avionics and custom options. The Piper Meridian is the 6 percent of the total active of their introduction onto the ger capacity not found in other In the pre-owned market, youngest contender currently fleet. Average asking prices market, and in some cases, the single-pilot jets. In fact, the there is a relative lack of avail- in production in the single- range from the mid-$2 million aircraft sold before being pub- Phenom 300 continues to hold able financing for the EA500. engine turboprop segment, but range for an early model air- licly listed for sale. With little the title of being the world’s We believe this has minimized that has not stopped it from craft with few options to $3.5 room left for improvements in largest single-pilot certified the buying power of many being a wildly successful air- million for a low-time, late- liquidity, we expect to see val- jet. Several new features and potential Eclipse buyers, thus frame. The Meridian available model aircraft. Average sale ues remain stable and perhaps options have been certified for putting downward pressure on inventory level sits at a healthy prices have remained stable, continue their rise in the near the aircraft, such as an increase used aircraft values. This has, 8 percent of the active fleet, hovering just over $2.8 million future. in the maximum takeoff weight however, served to increase which is the lowest it has been and zero fuel weight, the intro- the liquidity of the 500 market since summer 2007. EMBRAER PHENOM 300 duction of new optional due to the fact that the lower The current iteration of the features like CPDLC (control- up-front acquisition costs are Meridian from Piper features Phenom 300: Average Value ler-pilot datalink communi- now within reach of more buy- Garmin G1000 avionics as well cations) and Aircell Gogo Biz ers, especially those not need- as other interior enhancements. high-speed data, as well as the ing or wanting to finance the There have been more than 15 introduction of an entirely new purchase. new deliveries year to date and touch screen-controlled avion- Eclipse 500s continue to 12 pre-owned G1000 Meridians ics platform based on Garmin’s be valued primarily based changed hands, up from six dur- new G3000 avionics suite. upon the version of avionics ing the same period in 2012. Just There still are few Phenom installed, essentially creating over 4 percent of the G1000 fleet 300s available for sale on the submarkets within the larger is for sale now, which is a two- pre-owned market. In fact, Eclipse 500 market. Aircraft year low. Average selling prices there are only four aircraft with Avio version 1.7 avion- vary from $1.5 million to the available today, represent- ics are trading hands from high-$1.8 millions, depending ing less than 3 percent of the $1 million to $1.3 million. mostly on age and hours. active fleet. Model year 2010 IFMS-equipped (integrated The 2006-2009 Meridians airplanes will continue to flight management system) came equipped with the Avidyne trade up to $7.5 million, with aircraft sell for between $1.4 Entegra three-screen platform, 2011 models trading in the million and $1.6 million, and and 8 percent of the fleet of Embraer Phenom 300 high $7 million to low $8 mil- the Total Eclipse is available Avidyne Meridians is for sale lion range, and 2012s chang- for $1.5 million and above, currently, still a healthy num- ing hands at or above the $8 depending upon the options, ber. Average prices remain fairly million mark. The supply of hours and pedigree. flat since the beginning of 2013, used aircraft may increase in While values have soft- hovering in the $1.0 million to the coming months, however, ened over the past year, condi- $1.2 million range. There have as owners look to trade up to tions within the Eclipse market been 29 Avidyne Meridians sold newer Phenom 300s with all are starting to show signs of year to date, and that is down the latest bells and whistles. improvement. Lenders are slightly from 33 during the same returning and Eclipse Aero- period in 2012. Eclipse Model 500 space is continuing to build con- The first-generation Merid- fidence in the market by proving ians (2001 to 2005) have the The big news in the world of that not only does it have a solid, highest on-market inventory Embraer Phenom 300: Fall 2013 Market Phenom 300: Eclipse Aerospace continues sustainable business model, but level of all variants. Pricing var- 5% For Sale Used Aircraft Listings 8 to center around the Eclipse that it can deliver on its prom- ies much more on these mod- Total Fleet 149 550, the company’s new-pro- ise to bring the new-production els as there is more variation in Percent of Fleet for Sale 5.4% duction jet that features major Eclipse 550 to market and field equipment, especially with an Low Ask Price (US Dollars) $7,600,000 avionics and interior enhance- the support network. As this increasing number of Merid- Average Ask Price (US Dollars) $8,854,359 ments over the 500 model. The confidence continues to grow ians showing up on the resale Average Airframe Total Time 665 latest update still has Eclipse and financing becomes more market with retrofitted pan- Average Days on Market 229 delivering the first of the 550s readily available, we expect to els. There have been 29 “first- Pre-Owned Transactions (Q1 2013) 4 by year-end. Eclipse is also see further improvements in the generation” Meridians trading www.ainonline.com currently selling the Total Eclipse 500 market. Continued on page 92 u

ECLIPSE 500 Eclipse 500 Eclipse 500: Average Value Eclipse 500: Fall 2013 Market Eclipse 500: All Eclipse Models 14% For Sale Used Aircraft Listings 37 Total Fleet 265 Percent of Fleet for Sale 14.0% Low Ask Price (US Dollars) $650,000 Average Ask Price (US Dollars) $1,247,548 Average Airframe Total Time 468 Average Days on Market 302 Pre-Owned Transactions (2013) 19 © 2013 AIN Publications. All Rights Reserved. For Reprints go to

90 NBAA Convention News • October 22, 2013 • www.ainonline.com Light Bizplane Market Outlook uContinued from page 90

SOCATA TBM PILATUS TBM 700A/B: PC-12 45: Socata TBM: Average Value 7% For Sale 4% For Sale Pilatus: Average Value

TBM 700C2: 7% For Sale PC-12 47: 3% For Sale

TBM 850 Legacy: 8% For Sale

PC-12NG: 3% For Sale Socata TBM Pilatus PC-12

TBM 850 G1000: 4% For Sale

Pilatus: Fall 2013 Market Socata TBM: Fall 2013 Market PC-12 PC-12 47 PC-12NG 700A/B 700C2 800L 850G Used Aircraft Listings 21 7 12 Used Aircraft Listings 14 7 7 8 Total Fleet 568 202 400 Total Fleet 200 98 88 219 Percent of Fleet for Sale 3.7% 3.5% 3.0% Percent of Fleet for Sale 7.0% 7.1% 8.0% 3.7% Low Ask Price (US Dollars) $1,400,000 $2,850,000 $3,595,000 Average Ask Price (US Dollars) $1,261,000 $1,712,000 $1,975,000 $2,695,000 Average Ask Price (US Dollars) $2,163,222 $2,875,000 $3,615,625 Average Airframe Total Time 2,306 1,639 961 705 Average Airframe Total Time 5,035 1,798 1,143 Average Days on Market 188 159 129 104 Average Days on Market 316 315 188 Pre-Owned Transactions (YTD 2013) 14 8 9 14 Pre-Owned Transactions (2013) 36 12 18 hands since the beginning of 850 Elite models delivered year $1.85 million and $2.1 million. can be partially at fault for aviation market trends, with 2013, with a handful of those to date. The current iteration For the G1000 850 models, pric- the pricing trends. The inven- less than 3.3 percent of the being retrofitted versions. Aver- of the 850 Elite features Gar- ing has stayed flat year to date, tory levels of the combined 1,200-aircraft fleet for sale. If age sale prices for first-genera- min’s G1000 flight deck and hovering in the mid-$2 million A, B and C2 fleet have been we break that down further tion non-retrofitted Meridians reconfigurable cabin seats. to $3 million range. constant year to date. A retail by submarket, the -45 legacy range from the high $600,000 The pre-owned TBM 850 The TBM 700 market has buyer should be able to pick fleet of 568 PC-12s has 21 air- to $900,000 range. market has proved to be equally seen similar transaction vol- up an average A or B model craft for sale, or 3.7 percent of as potent, with year-to-date ume, although average prices for around $900,000 to $1.3 the fleet. The -47 fleet of 202 Daher-Socata TBM 700/850 transactions up nearly 40 per- for the 700 have been in million, while a C2 in similar aircraft has only seven air- Still able to claim the title cent from the same period in decline. These pricing trends condition would run around craft for sale, just 3.4 percent. as the world’s fastest single- 2012. The 850 activity has been can be attributed in large part $1.45 million to $1.7 million. The latest model -47E or NG engine turboprop, the TBM evenly spread between the TBM to the 850 market continuing There is much more variation fleet of 399 aircraft has only 700 and 850 continue to be 850 legacy models–those with to chase down prices of the in equipment, hours and ped- 11 aircraft (2.8 percent) for dominant in the entry-level the Bendix/King EFIS suite– older 700 models. Addition- igree in the 700 models (com- sale. These low numbers have turbine world. Demand for and 850 G1000 models. The ally, the aging airframes and pared to the 850), so there have served to keep values high for new TBM 850s has remained average pricing for 850 legacy equipment combined with been outliers on both ends of existing owners. www.ainonline.com strong, with more than 25 new models has hovered between increasing maintenance costs these pricing spectrums. With the higher max takeoff weight, upgraded engine, Pilatus PC-12 Honeywell Apex avionics and ECLIPSE 550 ARRIVES AT NBAA SHOW At the EBACE show in May, better handling, the PC-12NG Eclipse Aerospace brought its first production Eclipse 550, a newly built improved version of the Eclipse 500, Pilatus publicly announced the remains the most sought-after to its booth (No. C10844) at the NBAA convention. The new jet features many technology improvements as well PC-24, a Williams-powered jet PC-12 for owner-operators as upgrades to the cabin and an improved air-conditioning system. that will offer the versatility and transitioning into their first tur- In the cockpit, the Eclipse 550’s Innovative Solutions & Support-based Avio IFMS flight deck is now equipped short-field capability of a turbo- boprop. Recently the NG and with dual Waas LPV GPS receivers, SiriusXM weather, full Jeppesen approach plate display, dual and redundant prop with the 1,900-nm range the straight -47 market have channel FMS, ADS-B out and a new independent standby display. New options include synthetic- and enhanced- and 425-knot performance of proven to be extremely liquid, vision systems, autothrottles, an Iridium phone, radar, Taws and other optional equipment. a true business jet. Certification with several aircraft receiving Eclipse has added anti-skid brakes to the 550. The new interior comes in five different palettes; up to six is still several years out, but the accepted offers within days of forward-facing seats are available. Buyers can also choose a custom paint scheme, according to Eclipse. A three- jet promises to provide a much- introduction to the market. o year tip-to-tail warranty is included. needed migration path for cur- Designed to be flown by one pilot, the Eclipse 550 is powered by two Pratt & Whitney Canada PW610F turbo- rent PC-12 operators. Cyrus Sigari is CEO of light jet sales/acquisition firm jetAviva. Sigari is an ATP, instructor pilot and fans. Maximum altitude is 41,000 feet and maximum cruise more than 370 knots, with fuel burn just 59 gph. –M.T. In the meantime, the PC-12 type rated in the Cessna Citation Mustang, Citation continues to defy general 525, Embraer Phenom 100 and Eclipse 500. © 2013 AIN Publications. All Rights Reserved. For Reprints go to

92 NBAA Convention News • October 22, 2013 • www.ainonline.com