Addendum
Irish lessors come out fighting as Asian rivals increase market share
July 1st 2018
Supported by the Irish government, a new representative body, Aircraft Leasing Ireland (ALI) has been established to ensure Ireland retains its position as the aircraft leasing industry’s global leader. Read More » ALI was formally announced by Ireland’s minister for finance, Paschal Donohoe, in Dublin on July 3. It is the country’s first lobbying body to specifically support the country’s airline lessor industry.
More than 60% of airliners leased worldwide are management by Irish lessors, ALI said. The highly specialized aviation sector draws in an estimated US$566 million to the Irish economy and supports 5,000 jobs.
 |
“However,” ALI said: “it is important not to be complacent, with other financial centres directly seeking to attract the aircraft leasing industry.” No doubt the new leaders of the lobby group were referring to Asia and Hong Kong and Tianjin, China in particular.
Last year, the Special Administrative Region (SAR)of Hong Kong put in place a new tax regime that could rival Dublin in attractions for lessors. In Tianjin, where the aircraft lessor business began a decade ago, the market is undergoing a transformation but it remains a centre for China’s airlines as they increase the number of airliners they lease for their ever-expanding fleets.
Attracting to Asia the skilled and expensive staff required for the industry is well recognized by the many Chinese bank funded lessors being established in the region. Post graduate courses in aircraft finance are being set up at universities in Hong Kong and at several leading Mainland universities. “It will take up to five years to get up to speed with the skilled people we need, but it will happen faster than people think,” one major lessor told Orient Aviation.
SMBC COO, David Swan, is ALI’s inaugural chairman. Three other global lessors are founding members of the association: GE Capital Aviation Services (GECAS), Avolon and Aercap. GECAS COO, Declan Kelly, the deputy chairman of ALI, will succeed Swan as ALI chair in 2020. At press time, the association had 17 members.
Swan said: “This industry supports a growing number of high value jobs across leasing, technical and professional services. The principle objective of this body is to work with the [Irish] government to ensure Ireland remains the best place in the world to establish and run an aircraft leasing company.”
“Ireland is a global leader in the aviation finance industry due in part to our extensive network of double taxation treaties, our specialized skilled staff and our focus on aviation finance as a priority area in the government’s future strategy,” said finance minister Donohoe.
