Research conducted by staff at the Central Bank of Ireland suggest there are 1,132 Irish-resident aircraft-leasing companies in Ireland, including limited companies and special purpose vehicles.
The survey estimates the number of people employed by the sector at between 1,000 and 2,000, concentrated in Dublin and in and around Shannon, Co Clare.
Assets are estimated at somewhere between €83bn and €113bn and may be distorting attempts to measure the size of the economy because aircraft bought by Irish leasing companies are counted along with other investment in official data, even if the aircraft themselves never touch down in Ireland.
Researchers say the sector has been bolstered by tax rules that allow owners to depreciate their assets just a fraction of the way through their productive life. Detailed information was only available for 848.
Ireland’s comprehensive double tax treaty network with approximately 70 countries which makes it easier to conduct cross-border business without hitting tax barriers is a major factor in our central place in the leasing industry and depreciation rules that allow aircraft owners to write down the value of aircraft over just eight years are factors in making Ireland more attractive to lessors.
The Central Bank report says the useful life of a commercial jet aircraft is closer to 25 years, on average. Half of all planes remain in service even beyond that.
Research commissioned by the Federation of Aerospace Enterprises in Ireland found that the sector contributed €270m in corporation tax in 2007. More recent studies says the tax take is €310m.
