Aviation firm posts €5m pretax profit

A SHANNON-BASED US-owned aircraft leasing firm, General Electric Capital Aviation Services Ltd (GECAS), last year returned to profit to record $6.6 million (€5.2 million) in pretax profits.

This follows GECAS increasing revenues by 34 per cent, going from $144 million to $193 million in the 12 months to the end of December last year.

The profit last year follows the company recording pretax losses of $24 million in 2010 – a positive swing of $30.6 million.

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 $24 million 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 $55.8 million in 2010 and $266 million 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 Magellan Aviation Services Ltd.

The number who were employed by the firm – including executive directors – last year increased from 213 to 217, with employment costs last year increasing by 33 per cent from $42.6 million to $57 million.