High-net-worth individuals are also taking a “wait-and-see” approach, and “the general aviation market is also hampered by endless debate about taxes and charges … The climate of general uncertainty is a further burden for a stagnant economy.”
Pilatus, however, is seeing a pickup in government business for its PC-12 single turboprop. “Government agencies tend to be particularly keen to invest during times of economic crisis,” the company says, adding it saw a clear increase in those sales.
While the used market has been a drag on the general aviation industry as a whole, Pilatus says it has not experienced “any threat of oversupply” of the PC-12. “On the contrary, there has been a drop in the volume of used products available, and this has nudged secondhand prices upward.”
Despite the sluggish North American market, it still accounted for 33 of the 62 PC-12s sold in 2012. Pilatus saw a pickup in Asia, where the company sold four aircraft. These marked the first sales to Asia by the company in three years. “This initial success will spur us on to pursue our development efforts in the future,” the company says.