Approximately 50% of the worlds leased aircraft are managed or leased through this small, but mighty, island where the. We maintain and manage a comprehensive tax database of cross border leasing taxes for. Aviation finance and aircraft leasing industry pwc ireland. The association is a very positive step and will advance the interests of the aircraft leasing sector in ireland. For established lessors and new entrants, ireland is the ideal. Some of us might not even have heard of leasing companies before. Aercap is the global leader in aircraft leasing with, as of march31, 2020, 1,372 owned, managed or on order aircraft in its portfolio. Act 1997 was extended to include aircraft, making it very taxefficient to incorporate a special purpose vehicle in ireland for aircraft financing and leasing section 40, finance act 2011. The future of aircraft leasing through ireland 2020. Indeed, asia is expected to have surpassed europe by 2018 according to projected estimates. No exchange control regulations in ireland financial transfers restrictions apply consistent with eu countries. Why is ireland a hub for the global aircraft leasing sector. Led by a proven team, avolons commitment is to build the global leader in aircraft leasing. Maintain and develop irelands position as the leading global centre for aircraft leasing through direct collaboration and communication with irish government, relevant government bodies and.
Aircraft leasing industry outlook, size, share, trends. Background since the birth of guinness peat aviation gpa out of shannon in 1975, irish leasing expertise has developed enormously and ireland now boasts a portfolio of the worlds largest aircraft financiers, lessors and operators. Ireland is considered the birthplace of aircraft leasing and is recognised as the number one location globally in the sector. Mar 04, 2020 aircraft leasing involves the use of a lease by airlines and other aircraft operators to obtain an aircraft from either another airline or from a leasing company. Some, who have explored the intricacies of aviation, know that airlines sometimes lease aircraft, instead of buying them. Providing worldclass asset origination and management services. Similarly to this, aircraft leasing works pretty much the same. Lease rentals are not subject to withholding tax in. Ireland as a location for aircraft leasing and financing. Leasing is firmly based on the highly advantageous tax regime strategically targeted towards supporting this.
The first transatlantic flight landed here in 1919. Those companies provided the springboard for the development of expertise in aircraft financing and leasing in ireland. Its significance lies in its scale in the global financing of aviation, second only to the united states in aircraft leasing and trading activity. Maintain and develop irelands position as the leading global centre for aircraft leasing through direct collaboration and communication with irish government, relevant government bodies and other relevant stakeholders and business associations. Expertise irelands long association with leasing has led to it becoming a centre of excellence and one of the major attractions of ireland as a jurisdiction is the availability of professionals. Any entity or individual can operate an aircraft leasing trade in ireland. Over 50 percent of global aircraft are leased from ireland, and 14 of the top 15 global lessors operate in the country. Aertalent limited is an executive recruitment firm based in ireland providing quality recruitment solutions to the aviation industry worldwide. The country of choice for structuring aircraft transactions, 14 of the top 15 aircraft lessors are headquartered in ireland and over 50% of the worlds fleet of leased aircraft. Irelands aircraft leasing industry at a glance ibec. Irelands status as a leading world centre for aircraft leasing is perhaps more a product of business history than our favourable corporate tax treatment. Air lease corporation is a leading aircraft leasing company principally engaged in purchasing commercial aircraft and leasing them to its valued airline customers worldwide. Since gpa started a leasing business in the 1970s, ireland s aviation offering has grown considerably.
A powerful employee value proposition ireland is a global leader in aircraft financing and leasing. Annual tax returns tax computation and returns must be made annually. This article examines recent trends and structuring considerations in aircraft leasing from ireland. Among the firms stepping up were avolon, aercap, gecas, and smbc. Press statement aircraft leasing in ireland 2018 cso. In terms of aviation leasing, he put ireland on the world map. An airline is looking to expand its own fleet but doesnt have the cash to purchase an aircraft outright. Kpmg is delighted to welcome the launch of aircraft leasing ireland. Aircraft leasing in ireland crossing borders deloitte. We continue to manage 5 aircraft that were sold from our owned portfolio during the quarter. Why ireland is so popular for registering a company in the aviation and aircraft leasing sector.
The leading aircraft finance and leasing location dublin london new york palo alto. Aircraft leasing involves the use of a lease by airlines and other aircraft operators to obtain an aircraft from either another airline or from a. Aercap leased, purchased and sold 53 aircraft in the first. In this latest edition of the wlr, david swan outlines irelands role as a centre of excellence in the aircraft leasing sector and the work ali is doing to support this. Company formation ireland, how to register a company in ireland, aircraft financing, section 110. Information by leasing type wet leasing aircraft, crew, maintenance and insurance and dry leasing by aircraft type narrowbody, widebody and others, by security type assetbacked security abs and nonabs and by region north america, europe, asiapacific, the middle east and africa and latin america forecast till 2025. Ireland is the leading jurisdiction for the location of aircraft leasing companies and through which aircraft finance transactions are structured. Additionally, the fact that the registrar of the international. As a constituent part of irelands international financial services ifs industry, aircraft leasing is unique in having most global decisionmakers. Grand canal house, 1 upper grand canal street, dublin 4, ireland tel. Background since the birth of guinness peat aviation gpa out of shannon in 1975, irish leasing expertise has developed enormously and ireland now boasts a portfolio of the worlds. Flynn odriscoll legal update ireland a location for aircraft leasing. Aircraft leasing market overview ireland has long been one of the worlds major centres for crossborder aircraft leasing. Aircraft leasing is a growing industry and the view of lessor ceos is that 2019 should bring further growth for the industry2.
Aviation leasing and financing ey financial services thought. Today, ireland is the global centre for aviation finance and aircraft leasing. Aercap has one of the most attractive order books in the industry. Ireland s status as a leading world centre for aircraft leasing is perhaps more a product of business history than our favourable corporate tax treatment. Central bank of ireland aircraft leasing industry trends and analysis. Establish a number of internationally competitive aircraft leasing enterprises, so that china will become an important cluster for the. Why ireland is so popular for registering a company in the. Irelands excellent double tax treaty network of 72 countries is a key attraction for the aircraft leasing business in ireland. As the worlds largest cfm56 engine lessor, we have what it takes to cover your fleet. Ireland offers significant advantages to aircraft leasing operations, including relatively high capital allowance rates and low withholding taxes.
Alis terms of reference have been developed by the groups members. The leading aircraft finance and leasing location ireland is the leading jurisdiction for the location of aircraft leasing companies and through which aircraft finance transactions are structured. The sector continues to create high value jobs in ireland with irish lessors accounting for over half of the global leased fleet. As a constituent part of irelands international financial services ifs industry, aircraft leasing is unique in having most global decisionmakers based here, managing over 60% of the worlds leased fleet. As of december 31, 2019, alcs fleet was comprised of 292 owned aircraft and 85 managed aircraft with 4 new. Support aircraft leasing companies to consolidate and expand the domestic market, and actively explore the international market. This includes those risks posed by new market entrants, eu and oecd regulations, talent shortage, the climate change movement and financial incentives. Financial overview by size, share, trends, segments, geographic analysis, leading companies and their rates global aircraft leasing market. This sector is a flagship for ireland s international financial services industry and proof that in a postbrexit environment, ireland can be a global leader in finance, attracting and retaining key decisionmakers.
We have been retained by an aircraft leasing platform to recruit their first person to set up their legal function in ireland. Aviation financing is a hot topic and likely to remain so over the coming years, as the demand for financing. Aircraft leasing law and regulation regulation of leasing activities there is no specific regulation of big ticket aircraft leasing activities and lessors in ireland. The irish tax authorities are supportive of the leasing industry as it encourages economic development and employment. Avolon is an aircraft leasing company based in dublin, ireland.
Steering the supercycle aviation leaders report 2020 kpmg. Dublinbased aircraft leasing firm awas is the latest in the sector to. In addition to a robust infrastructure and access to experienced professionals, ireland based aircraft structures. Aircraft leases are leases used by airlines and other aircraft operators. In 2011, the definition of qualifying asset in section 110 of the taxes consolidation act 1997 was extended to include aircraft, making it very taxefficient to incorporate a special purpose vehicle in ireland for aircraft financing and leasing section 40, finance act 2011. Al announced an update on activity taking place in the fourth quarter of 2019.
Central bank of ireland database on aircraft leasing, we present the results following an. We have placed cookies on your computer to help improve your experience. Aercap is the global leader in aircraft leasing, providing a global network of airline customers with comprehensive fleet solutions and access to the most modern, fuelefficient aircraft. Additionally, the fact that the registrar of the international registry is located in ireland has resulted in. In addition to a robust infrastructure and access to experienced professionals, irelandbased aircraft structures. The ifsc is the largest aircraft leasing hub in the world with 14 of the top 15 aircraft lessors headquartered in ireland including aercap, gecas, smbc and avolon and circa 50% of the worlds fleet of leased aircraft is managed through ifsc companies. Three charter flights from china to ireland supported by irish leasing firms, and ali, the aircraft leasing unit of ibec, representing 33 lessors in ireland have delivered much needed ppe equipment for the irish healthcare system. Since gpa started a leasing business in the 1970s, irelands aviation offering has grown considerably. This is a broad role where you will be responsible for both managing aircraft leasing transactions and corporate legal. This paper highlights various factors which contributed to the development of aircraft leasing both globally and in ireland.
Avolon leases aircraft and provides lease management services to airlines and aircraft investors worldwide. The aircraft leasing industry in ireland central bank of ireland. In a world where air travel is expected to grow, where significant capital is needed to fund aircraft deliveries, and where the percentage of leased aircraft continues to trend upwards towards 50%, lessors are well placed to continue to thrive. Ireland was the birthplace of pioneering leasing companies such as guinness peat aviation gpa. As of may 20, aircraft leasing is not regarded as banking business in ireland and is not a regulated activity by the central bank of ireland. Approximately 50% of the worlds leased aircraft are managed or leased through this small, but mighty, island where the presence of top aviation senior leadership coupled with a. This is demonstrated by the number of international leasing companies from virtually every major trading nation which have established operations in ireland. From 2020 to 2030, build an aircraft leasing industry cluster. Ireland an ireland based aircraft lessor irish lessor is taxed on any lease rentals derived from the lease of aircraft entered into by the irish lessor. However, lessors must comply with general standards of trading laws. It identifies and assesses the risks to the sector including to irelands status as a leading global hub. About 100 aircraft leasing companies in ireland have never reported on the number of planes they actually own, which makes it difficult to know for certain how many aircraft are currently being managed by the industry. In the context of aviation finance, while the above headwinds are concerning, the overall outlook remains broadly positive. Most of the worlds major aircraft lessors, financiers and arrangers have established irish operations from which they finance.
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