Aircraft leasing firm has pre-tax losses of $24m
The loss to the end of December last follows the company recording pre-tax profits of $45.8m in 2009.
The directors attribute the pre-tax loss to a drop in revenue from $191m to $144m, with administrative expenses increasing from $146.7m to $168.7m.
Accounts filed to the Companies Office show that GECAS paid a dividend last year of $55.8m.
This followed a dividend payout of $266m to its US parent in 2009.
The company’s after-tax loss last year was $14.7m following a tax credit of $9.39m — GECAS received a tax credit of $9.5m in 2009.
A subsidiary of US giant General Electric, GECAS is one of a cluster of companies in the Shannon Free Zone engaged in aircraft leasing that also includes Shannon Engine Support and Genesis Lease.
GECAS — which has a fleet of over 1,800 owned and managed aircraft with approximately 245 airlines in 75 countries — offers a wide range of aircraft types, financing options and also provides productivity solutions.
The directors state: “The level of income has decreased year-on-year due to a reduction in management fees received. The directors expect that the present level of activity will be sustained for the foreseeable future.”
On the company’s key performance indicators, the directors say there was a negative return on assets of 6.64% and 14.83% for 2010 and 2009 respectively.
“The main driver during the year was a decrease in management fees received and also an increase in administration costs.”
The figures show that remuneration for the company’s 14 directors — eight of whom are Irish — totalled over $870,000 each on average, including aggregate salaries of $4.1m, bonuses of $5.1m, share-based payments of $1.4m, pensions of $1.1m and benefits-in-kind of $252,000, resulting in a total of $12.2m.
The company employed 213 people in marketing and administration last year, with staff costs — including directors’ salaries — falling from $47.3m to $42.63m.
After the dividend payout and the loss sustained last year, the company’s accumulated profits reduced from $106.7m to $34.3m.
The company’s net assets stood at $2.738 billion. The accounts show that the company’s expenses last year increased by 15% from $146.7m to $168.7m.
The company recorded an operating loss of $24.7m last year, compared to an operating profit of $44.2m in 2009.
The company’s income arises from the leasing of engines under operating leases, aircraft under finance leases and from the provision of management services to the aviation industry.
All of the company’s income derives from activities in Ireland and the management fee income declined from $162.5m to $117.1m.
GECAS recorded the loss after taking into account an impairment cost of $3.9m and depreciation costs of $2.3m.
The company — established in 1993 — is located in a 70,000sq ft office premises at the €200m Westpark business campus in the Shannon Free Zone.
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