GE Capital Aviation Services sees pre-tax profits soar

Pre-tax profits at one of the world's largest leasing aircraft firms GE Capital Aviation Services (GECAS) last year soared by 86 per cent to $1.79 billion (€1.62 billion).

New accounts filed by the Shannon-based company show that the firm recorded the profits chiefly through dividend income of $1.78 billion received from subsidiaries.

In turn, the company paid a $1.79 billion dividend to its parent firm, GE Capital Aviation Funding Unlimited Company, during the year.

The company recorded the increase in profits after revenues increased by 2 per cent from $234.8 million to $239.7 million.

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In a post-balance sheet event in March of this year, the company declared a dividend of $302 million.

The company received a corporation tax credit of $4.1 million on its $1.79 billion pre-tax profit last year.

The accounts show that based on the 12.5 per cent Irish corporation tax rate the business was potentially liable to a corporate tax liability of $224 million.

However, the potential liability was reduced through a combination of $222.2 million in non-taxable items and a $5.9 million claim from group tax relief that contributed to the corporation tax credit of $4.1 million.

Directors’ pay at the company last year decreased sharply from $10.6m to $6.5 million.

In the year under review, nine Irish directors served on the board – Michael Deeny, Diarmuid Hogan, Sean Flannery, Seamus Fitzgerald, John Ludden, Virginia Fox, Deirdre Norris, Declan Hartnett and Diarmuid Hyde.

The pay to directors was made up of $5.8 million in pay, $432,000 in pension payments, and $181,000 on benefits in kind.

A subsidiary of US giant, General Electric, the Shannon based GECAS Ltd employs 278, including directors. Its employment costs increased from $60.63 million to $70.33 million.

Aircraft fleet

GECAS has a fleet of more than 1,900 owned and managed aircraft with approximately 250 customers in more than 75 countries. It offers a wide range of aircraft types and financing options, including operating leases and secured debt financing, and also provides productivity solutions such as spare engine leasing, spare parts financing and management.

At year end, the firm had accumulated profits of $126.77 million with shareholder funds totalling $3 billion.

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.

The profit last year takes account of non-cash depreciation costs of $1.4 million.

The figures show that the bulk of the company’s revenues at 91 per cent or $218 million is generated from European customers, with customers in the Americas making up the remaining 9 per cent or $21 million.

The company – established in the Shannon Free Zone in 1993 – is located in a 70,000 sq ft office premises at the €200 million Westpark business campus in the Shannon Free Zone.

Ireland is home to nine of the ten largest aircraft leasing firms in the world and some of the other big players based here include SMBC, Pembroke Capital, Awas Capital, and Avolon.