Aircraft firm in €5m profit

A Shannon-based US-owned aircraft leasing firm, General Electric Capital Aviation Services Ltd, last year recorded $6.6m (€5.2m) in pre-tax profits.

This follows the company increasing revenues by 34%, going from $144m to $193m in the 12 months to the end of December last year. The profit contrasts with the previous year, when the company recorded pre-tax losses of $24m in 2010 — a swing of $30.6m.

According to the directors’ report “the level of income increased year on year due to an increase in management fees received. The directors expect that the present level of activity will be sustained for the foreseeable future”.

It adds: “The management fees in the current year includes fees of $24m in respect of the termination of contractual agreements. The income is not expected to reoccur.”

The accounts show that the company did not pay a dividend last year after dividend payouts of $55.8m in 2010 and $266m in 2009.

A subsidiary of US giant General Electric, Gecas Ltd, is one of a cluster of companies in the Shannon Free Zone engaged in aircraft leasing that also includes Shannon Engine Support and Magellan Aviation Services Ltd.

Numbers employed by the firm — including executive directors — last year increased from 213 to 217 with employment costs last year going up 33% from $42.6m to $57m.

The company— 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 and financing options, including operating leases and secured debt financing, and also provides productivity solutions including spare engine leasing, spare parts financing and management.

On the company’s key performance indicators, the directors state that the return on assets was a positive of 4.4% and this followed a negative of 6.64% in 2010.

Sixteen directors served during the year and their aggregate pay topped $11.9m that included bonus payments totalling $5.2m; aggregate salaries of $3.3m; pensions of $1.2m; share-based payments of $795,000 and benefits in kind of $276,000.

The profit takes account of non-cash depreciation costs of $2.1m. The firm had accumulated profits of $36.4m with shareholder funds totalling $2.77bn.

The accounts show that the company’s expenses last year increased from $168m to $187m. The company recorded an operating profit of $5.9m last year compared with an operating loss of $24.7m in 2010.