Profits at aircraft leasing firm up 135%

A WORLD-leading aircraft leasing firm in Shannon last year more than doubled its pre-tax profits to $66 million (€45.9m).

According to the latest accounts lodged with the Companies’ Office, US-owned General Electric Commercial Aviation Services Ltd (GECAS) increased the size of its business by 1% from $188m in 2007 to $190.7m to the end of last year.

The company’s operating profit last year dropped by 45% from $24.5m to $14m.

However, the firm achieved its 135% increase in pre-tax profits through a profit of $42m on the sale of a fixed asset and a $9.7m dividend from a subsidiary.

GECAS is a subsidiary of US giant, General Electric, and is one of a cluster of companies in the Shannon Free Zone engaged in aircraft leasing.

The company last year paid a dividend of $134m to its parent.

According to the directors, “both the level of business and the year end financial position were satisfactory and the directors expect that the present level of activity will be sustained for the foreseeable future”.

The company’s expenses last year increased 8% from $163.8m to $176.6m.

After securing the pre-tax profit of $66m, GECAS benefited from $2m in a tax credit.

Taking into account the $134m dividend payout, the filings show that the company had accumulated profits of $319m at the end of 2008 and this accounted for 13% of the total shareholders’ funds of $2.4bn that included a capital contribution of $2bn.

Staff numbers at Shannon increased last year from 175 to 220 and the company’s employment costs, including executive directors’ pay, increased from $47.2m to $48.8m.

Directors’ salaries rose by 14% from $1.8m to $2.1m while the directors’ bonus payments increased 63% from $2.3m to $3.8m, though their share based payments decreased from $962,000 to $291,000.

The company’s pension deficit increased by $10m from $9.5m to $19.5m at the end of the year.

An analysis of the firm’s turnover — which all derives from activities carried out in Ireland — shows that $127m was received in management service fees and $24m in operating leases.

GECAS is a leading global player in commercial aircraft leasing and financing with more than 1,800 owned and managed aircraft.

The company, which was established in the Shannon Free Zone in 1993, leases aircraft to more than 230 airlines in 70 countries.

Last summer, GECAS completed a relocation to a new 6,500 sq m (70,000sq ft) office premises at the €200m Westpark business campus in the Shannon Free Zone.