Pretax profits up 81% for aircraft leasing firm

PRETAX PROFITS at Shannon-based aircraft leasing and sales firm, Magellan Aviation Services Ltd increased by 81 per cent to $7.3 million (€5.8 million) last year, new figures show.

In accounts just filed by the aircraft leasing firm to the Companies Office, they show Magellan increased its revenues by 15 per cent from $45.1 million to $51.8 million in the 12 months to the end of December 31st last.

The principal activity of the company is the purchase, stocking and resale of rotable and expendable aircraft spare parts and the leasing of aircraft engines.

According to the directors’ business review “the increase in operating lease revenue during the year resulted in the overall increase in revenues.

Aircraft and aircraft parts sales were consistent with levels achieved in previous years”.

They add “the pool of engines available for lease has increased and this has supported the strong performance of the leasing business”.

The report continues: “Overheads were in line with expected levels. The operating profit has increased from $7 million to $10 million in 2011 – an increase of 43 per cent.”

The report states: “The overall debt increased from $38 million to $39.5 million – the bank debt portion decreased year on year but this decrease was more than offset by an increase in loans from related parties.”

The directors state the company would continue to develop its business worldwide.

Magellan is one of a number of aircraft leasing firms based in Shannon with Shannon Engine Support and General Electrical Capital Aviation Services also located in the Shannon Free Zone.

Minister for Transport Leo Varadkar has stated his department is considering the development of an International Services Centre for the aviation industry at Shannon.

The figures for the US-owned Magellan show that at the end of last December, the firm had accumulated profits of $18 million.

The filings show that the firm last year paid $14.7 million on tangible assets for lease and this followed the company spending $11.8 million under the same heading in 2010.