Interview: Markus Bucher, Pilatus CEO

Markus Bucher joined Switzerland’s Pilatus Aircraft more than 30 years ago. He was appointed CEO in 2013. On the eve of the European Business Aviation Convention and Exhibition (EBACE), he speaks with Aviation Week Network Show News Editor-In-Chief Thierry Dubois. Bucher shares his thoughts on supply chain issues and how to accelerate sustainable aviation fuel production.

Q: How would you describe the market?

A: We had a very strong year in 2023. We are satisfied with our performance in a market that is seeing its 8th year of growth—that is for the entire business aviation sector. At Pilatus, we delivered 101 PC-12 turboprops and 47 PC-24 jets—both record numbers.
Our production capacity is fully loaded until 2025. We have not opened our orderbook beyond 2025 because of supply chain uncertainties. Some suppliers are still too fragile.

Q: Do you mean suppliers are financially fragile?

A: They are financially OK. Most are based in the U.S., where they have staffing problems. Know-how retention has been one issue. Sometimes, the parts we receive are not at the expected quality standard. That happens with components as complex as an engine or as simple as a recognition light.

Suppliers were hit by the COVID-19 crisis, and then the war in Ukraine. They had to rebaseline their own raw material supply. They are still suffering, which limits our output. We have to deal with issues in procurement and quality control. We have to do rework on some systems. We were hoping those problems would be over at the end of 2023, but we still have to cope with supply chain-related shortages.

Therefore, bringing some parts productions in house has become a strategic goal. That is for the longer-term. Implementing the strategy will enable us to maintain the quality and Swiss precision our customers expect.

Q: What are the regions driving demand?

A: These are still the U.S. and Europe. We see Asia growing, and China is coming back. During the first months of 2024, skies opened for business aviation in China.

Q: How has the introduction of the PC-24’s new model impacted sales? 

A: That model is going extra strong. The improvement brought the payload-range to such a high. It is no longer a light jet, we may call it a superlight business jet. Some customers say they cannot see a competitor for the PC-24. The long divan option is enjoying great success, I did not expect people to be so crazy about it.

Q: How is Pilatus’ product range going to evolve in business aircraft?

A: Every product is under an upgrade development project. It is too early to tell you more.

Q: Do you see progress in SAF production?

A: By far, supply is insufficient because demand is so high. We need a breakthrough in bio and synthetic fuel (e-fuel). We have taken a share in a Switzerland-based specialist. Moreover, we have committed to buy 25% of the SAF they will produce at their upcoming site in Spain. That will feed two-thirds of our own company’s flights with a 30% e-fuel blend.

Our customers would like to buy SAF physically, as opposed to book-and-claim. With a book-and-claim scheme, they do not know whether their money will be well spent. So, our priorities are, first, to industrialize e-fuel at a lower cost. And, second, help increase the number of production plants and make more e-fuel available.

Q: Are you finding enough new recruits?

A: Due to our fast growth, finding enough skilled personnel is a challenge. This month, our workforce stands at 3,000 full-time equivalent—a record high. We grow at our Stans headquarters and elsewhere in Switzerland. We cannot do everything in Stans, so we invest where the experts are. We took over Ruag Aerostructures Schweiz AG in Emmen. In Sevilla, Spain, our cables and structures production facility shall start in the fall of this year, and we substantially invest in the U.S.

Q: As EBACE is seeing a declining number of exhibitors, can you describe the value of exhibiting for Pilatus?

Yes, it is a bit sad. Typically, we used the show to talk to our customers and suppliers but that possibility is now limited. The value for us is that the show is in our territory. For our employees, it is easy to go and see what is out there. We still meet European customers at EBACE. It is still good value for money; it is a good show for Pilatus.