The Government and the development agency Enterprise Ireland are hoping to attract major aviation companies like Airbus to the Republic after bringing a new aircraft registry to Shannon.

Described as having "significant strategic value", the registry will be operated by a new company called Aviareto Ltd.

The registry will allow financial institutions to register their financial interest in aircraft and aircraft parts. Described as a "land registry for the aerospace industry", the Republic won the contract despite stiff competition from Canada, Singapore and Spain.

The contract was awarded by the International Civil Aviation Organisation (ICAO), an agency of the United Nations. At present because aircraft pass through various jurisdictions, legal systems and time zones, judging the precise owners of an aircraft can be difficult.

The new ICAO registry aims to simplify this process. A statement from Enterprise Ireland said the registry would reduce aircraft leasing costs by about 2 per cent globally, saving the airline business about $5 billion (€4.13 billion) a year.

Mr Gerry Murphy, executive director of Enterprise Ireland, said: "The registry is a strategic, high-profile venture for the global aviation industry. Its location in Ireland will add to our already high standing in this community."

The charges levied by Aviareto will be regulated by ICAO and a source said yesterday this meant there would not be huge profits.

About 10 jobs will be provided at the company and IT will be provided by Sita, which is a leading provider of air transport software.

The Republic's development agencies and the Department of Transport will now be able to compete for other registries in the following areas: marine, rail and space.

For several years the Republic has been trying to win contracts from the likes of Airbus and Boeing and a source said yesterday the location of the registry in the State would bolster this effort.