'A World Leader in Aviation Finance and Leasing'
Irish based aircraft leasing companies account for 50% of the global leasing industry.
Ireland has become a world leader in aircraft leasing, with 50% of the global lessors headquarters based in Ireland - GECAS, Avolon, Aercap to name a few. The industry is set for growth over the coming years with gross income in Ireland set to rise to €20 billion by 2033.
Airlines are constantly in need of new aircraft to grow, expand, and keep their fleet up to modern standards.
$120 billion worth of aircraft was produced in 2015 globally to supply these airliners needs.
However, this still wasn't enough to supply the demand for new aircraft. Boeing, and Airbus all have HUGE back orders on new aircraft for airliners across the globe.
Ryanair's founder, Tony Ryan, was a pioneer in the aircraft leasing business when he spotted the potential for a lease-finance business model in order to help improve airlines returns.
He was able to offer airlines with surplus aircraft an opportunity to off-load them to other parts of the globe in order to gain steady profits.
Aircraft leasing companies are in constant state of dynamic development. Adapting to the markets ever changing demands.
Each of them operates a fleet which is regularly moving between airline customers.
Leasing accounts for about 45% of all aircraft being delivered to airlines
An intense period of corporate activity has ensued over the last five years, including mergers, acquisitions and IPOs with a lot more planned for 2016 and beyond.
So, you might be wondering why the hell a small peripheral country like Ireland boast's such a huge percentage of the global aircraft leasing companies.
Ireland is known world-wide for having legitimate low-tax strategies. The perfect location for multi-national corporations to situate their European headquarters in.
There are many more reasons why Ireland has remained strong as the centre of excellence for aviation finance and aircraft leasing:
Corporation Tax rate: 12.5%.
Expansion of double tax treaty network.
Opportunity for new investment.
Irish Aviation Authority is an EASA registry.
Irish Stock Exchange has a dedicated Aviation Exchange for aviation related debt.
The Irish Government have a joint venture with SITA - Aviareto.