Piper Meridian vs Daher TBM 850 Turboprop Comparison

Last produced in 2014, as of May 2024 the Piper Meridian was the top-selling business turboprop on the pre-owned market during the preceding 12 months having recorded a total of 97 transactions (or an average of 8.1 transactions monthly).

So, what makes the single-engine Piper Meridian so popular on the used aircraft sales market, and how much of a step-up is the Daher TBM 850, which ceased production in 2013? Over the following paragraphs, we will explore some of the key productivity parameters, including payload, range, speed, and cabin size, and cover current market values.

Piper Meridian

In 1997 Piper announced its intention to market a pressurized turboprop version of its piston-powered Malibu aircraft, flying a prototype the following year which it named the Meridian. The Piper Meridian is powered by a single Pratt & Whitney Canada PT6A-42A powerplant, and certification was achieved in September 2000.

Designed at the outset for owner-operators stepping up from single-engine piston airplanes, the Piper Meridian has built-in features that aim to minimize pilot workload. In 2009 Piper began offering the Meridian with a three-screen version of the Garmin G1000 including the Garmin GFC 700 autopilot (replacing the former Avidyne Entegra flight panel).

In 2012, Piper celebrated the 500th Meridian delivery, then in 2015 Piper rebranded the PA-46 model line as the M Class series, and the Piper Meridian was reintroduced as the M500.

As of this writing, there were 535 Piper Meridians in operation around the world, 509 of which were wholly owned. Only two units had been retired to date. North America was home to the largest Piper Meridian fleet percentage (69%), followed by Europe (15%) then South America (13%).

Daher TBM 850

Built and marketed as the Socata TBM 850 before Daher acquired Socata, the Daher TBM 850 is part of a family of high-performance single-engine turboprop business aircraft representing one of several logical step-up paths for Piper Meridian owners.

Essentially an improved version of the earlier TBM 700, the TBM 850 is powered by a single Pratt & Whitney PT6A-66D. Production began in 2006 and ended in 2013. From mid-2007, the TBM 850 incorporated the Garmin G1000 integrated all-glass flight deck.

The TBM 850 ELITE was introduced in 2013 and included further cockpit enhancements while also allowing operators to choose different seating configurations. Serial numbers 610 and higher are ELITE configured. The ELITE was short-lived, however, and in 2014 it was replaced on the production line by the TBM 900 series.

At the time of writing there were 321 TBM 850s in operation, 304 of which were wholly owned. North America was home to the largest fleet percentage (78%), followed by Europe (12%) and South America (7%).

The Piston/Turboprop Upgrade Path

As mentioned, the Piper Meridian was introduced to ease passage for piston aircraft owners looking to step into turboprop aircraft ownership. The most popular piston aircraft for owners to move from are the Piper Mirage and Matrix.

Business Aviation has always depended on a steady supply of users starting small before growing into larger, more powerful aircraft as their travel needs develop.

The single-engine turboprop market is diverse with aircraft offering different performance and specifications to suit the needs of a multitude of owner/operator mission requirements. But as Table A shows, apart from moving into newer/updated Meridian aircraft, Piper Meridian owners often tend towards buying TBM 850s, according to JETNET (May 2024).

Table A - Common Step Up Options for Piper Meridian Owners

So, what extra capability and cost can they expect to acquire through such a step-up? Let’s explore...

Payload Comparison

As we have mentioned previously, potential operators should focus on payload capability as a key factor. Table B, sourced from B&CA, shows that the Piper Meridian’s ‘Available payload with Maximum Fuel’ (at 350lbs) is just over half what is offered by the TBM 850 (633lbs).

Table B - Piper Meridian vs Daher TBM 850 Payload Comparison

Cabin Cross-Section Comparison

Chart A, meanwhile, shows a cabin cross-section comparison. The Piper Meridian offers slightly more width than the TBM 850 (4.1ft vs 4.0ft). Meanwhile the cabin height advantage goes to the TBM 850 (4.1ft vs 3.9ft).

Chart A - Piper Meridian vs Daher TBM 850 Cabin Comparison

Not depicted by the cross-section, the TBM 850 has an advantage in terms of cabin length (15ft versus 12.3ft). However, the overall cabin volume of the Meridian is a little larger than the TBM 850 (164cu.ft versus 143cu.ft), per JETNET and OEM data.

Range Comparison

As depicted by Chart B using Vero Beach, FL as the origin point, the Piper Meridian (699nm) shows less ‘four pax with available fuel’ range than the TBM 850 (1,150nm).

Chart B - Piper Meridian vs Daher TBM 850 Range Comparison

Note: For turboprops, ‘four passengers with available fuel’ represents the maximum IFR range of the aircraft at long-range cruise with four passenger seats occupied. NBAA IFR fuel reserve calculation for a 100nm alternate is assumed. The lines depicted do not include winds aloft or any other weather-related obstacles.

Powerplant Details

The Piper Meridian aircraft utilizes one P&WC PT6A-42A engine rated at 500shp and having a fuel burn rate of 30.1 gallons per hour (gal/hr). The TBM 850 aircraft has a single 700shp Pratt & Whitney Canada PT6A-66D powerplant with a burn rate of 70.4 gal/hr.

Cost per Mile Comparison

Chart C details the ‘Cost per Mile’ for each turboprop, factoring direct costs and with both aircraft flying a 1,000nm mission with an 800lbs (four passengers) payload. As shown, the Piper Meridian ($2.17/nm) has the lower cost compared to the TBM 850 ($3.04/nm) – a difference of 29%.

Chart C - Piper Meridian vs Daher TBM 850 Cost Per Mile Comparison

Total Variable Cost Comparison

The ‘Total Variable Cost’ illustrated in Chart D (sourced from JETNET) is defined as the cost of fuel expense, maintenance labor expense, scheduled parts expense and miscellaneous trip expense. The Total Variable Cost for the Piper Meridian is $397 per hour, which is 37% less than the TBM 850 at $628.

Chart D - Piper Meridian vs Daher TBM 850 Variable Cost Comparison

Market Comparison

Table C contains the 2013 prices from Aircraft Bluebook (Summer 2024 data) for each aircraft, since this was the last year both models were in production. The average speeds and ranges are from B&CA, while the number of aircraft in-operation, percentage ‘For Sale’ and average sold are as reported by JETNET.

The Piper Meridian fleet had 5.6% of its fleet available at the time of writing, while the TBM 850 had 8.1% of the fleet available on the pre-owned market. As of May 2024, the average number of transactions per month for the preceding 12 months shows the Piper Meridian at 8.1 units, compared to the TBM 850 at 4.3.

Table C - Piper Meridian vs Daher TBM 850 Market Comparison

Asking Prices & Quantity

The pre-owned market for the Piper Meridian at the time of writing showed a total of 29 aircraft available ‘For Sale’, per JETNET. Of those, 17 displayed asking prices ranging from $900k to $1.895m. By comparison, 26 TBM 850s were available for sale, with 14 displaying asking prices of between $1.595m and $2.825m.

Comparing the high-end JETNET prices with Aircraft Bluebook’s average values for 2013 models in Table C (above), it appears the market offers some room for buyer/seller price negotiations. Keep in mind, however, that each serial number is unique, and the time on the airframe/engines and general age and condition of specific aircraft will cause great variations in price.

The final negotiated price remains to be decided between seller and buyer before the sale of an aircraft is completed.

Depreciation Schedule

Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers are allowed to accelerate the depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period.

In certain cases, aircraft may not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS) where depreciation is based on a straight- line method, meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS.

There are a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period or under ADS using a twelve- year recovery period.

Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a six- year recovery period.

There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in a given year.

The US enacted the 2017 Tax Cuts & Jobs Act into law on December 22, 2017. Under that Act, taxpayers could potentially deduct up to 100% of the cost of a new or pre-owned aircraft placed in service before January 1, 2023 – a huge bonus for aircraft owners and operators.

After December 31, 2022, the Act decreased the percentage available each year by 20% until it phases out altogether on December 31, 2026. In 2024, the available rate of depreciation is 60%.

Tables D and E depict an example of using the MACRS schedule for a 2013 model Piper Meridian and Daher TBM 850 placed in private (Part 91) and charter (Part 135) operations over five and seven-year periods, assuming 2013 list prices of $1.3m and $2.4m, respectively, per Aircraft Bluebook (Summer 2024).

Table D and E - Piper Meridian and Daher TBM 850 Tax Depreciation Schedule

Productivity Comparison

The points in Chart E are centered on the same aircraft. Pricing used in the vertical axis is as published in the Vref Pricing Guide.

The productivity index requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors:

1.    Four/Eight Passenger Range (nm) with available fuel.

2.    The long-range cruise speed flown to achieve that range.

3.    The gross cabin volume available for passengers and amenities.

Chart E - Piper Meridian vs Daher TBM 850 Productivity Comparison

Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed and cabin size.

As established at the beginning of this comparison, as the entry point into single-engine turboprop ownership and a model some owners will seek to step up from as their mission needs grow, those who are not buying another Piper Meridian frequently look to move into a TBM 850, per JETNET data.

The question becomes, how much additional capability does $1.1m buy in the pre-owned single-engine turboprop marketplace? For comparative purposes, we have also included the Piper M600 (2016 model) which brand-loyal Meridian customers may prefer. The M600 offers improvements over the Meridian/M500 performance.

As highlighted, the TBM 850 offers significant gains in speed and range, and also in terms of payload capability over the Meridian, while also offering greater productivity than the 2016-model M600. However, those seeking to step-up from the Meridian should be aware of the increased operating costs (hourly and cost per mile) that come with TBM 850 ownership.

Interestingly, a 2016 model Piper M600 costs less to acquire pre- owned than a 2013 model TBM 850, while offering slightly lower productivity. Having just introduced the Piper M700, it will be interesting to revisit the topic of viable step-up models in the future, once a pre-owned market is established, and see how successful Piper has been in ‘keeping it in the family’ with its growing M Series.

Within the preceding paragraphs we have touched upon several of the attributes that business aircraft operators value. There are other qualities such as airport performance, terminal area performance, and time to climb that might factor in a buying decision.

The Piper Meridian and TBM 850 continue to be popular today. Those operators in the market should find the preceding comparison useful.

Our expectations are that these two turboprops will continue to do well in the pre-owned markets for the foreseeable future – though the TBM 850 may lose out on some market share as the M600 and M700 develop a longer pre-owned market track record and depreciate more.

Given that many Meridian customers step up from Piper’s piston products, and that this is a price-sensitive segment of the pre-owned market, it is likely that they could seek out pre-owned M Series aircraft for future step-up options.

• Find Piper Meridian aircraft for sale
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