Diversity

Careers
95
Flying high
This issue, we look at life in the aircraft leasing industry.
David Breen explains why this sector can be a rewarding
stomping ground for Chartered Accountants seeking
a challenging, fast-paced environment.
Over the past number of years,
Ireland has emerged as the
epicentre for aircraft leasing
firms, growing to become the leading
jurisdiction globally for this profitable
industry. Several reports have found
that 50% of the world’s leased aircraft
are managed from Ireland, with
an Irish-leased aircraft taking-off
every two seconds somewhere across
the globe. The success of aircraft
leasing in Ireland was founded on
the establishment of Guinness Peat
Aviation (GPA) in the 1980s. This
led to the creation of a local hub
of experienced and skilled global
aviation professionals.
More recently, the key success
factors include:
• Ireland’s corporation tax rate of
12.5%;
• 0% VAT on international aircraft
leasing;
• A comprehensive double tax
treaty network; and
• Ireland is recognised as a centre
of excellence in this sector.
Where do accountants fit in?
Despite Ireland being home to most
of the world’s leading aircraft leasing
firms, there appears to be an apparent
lack of understanding as to how
the industry operates and where
accountants fit in the process of renting
aircraft.
Aircraft leasing operates in a
similar way to other high-value asset
investment businesses such as property
development, hotel groups or renewable
energy. While the assets in these other
industries lack the unique ability to
fly, the fundamental principles of the
business process are very similar.
The lessor raises funds to purchase
an aircraft and subsequently derives
an income from this asset by leasing
it to airlines under a specific leasing
agreement.
While there may be numerous
similarities, it is the differences that
distinguish aircraft leasing from
the industries mentioned above.
The methods used to raise capital to
purchase aircraft, the complexity of the
leasing agreements and the fast-paced
nature of multi-billion dollar dealmaking
are just some of the factors that
contribute to a dynamic, challenging
and energetic environment.
Shatter the glass ceiling
The widespread global growth in the
aircraft leasing industry, combined
with Ireland’s status as a hub for
lessors, has cultivated a variety of
prime opportunities for ambitious
accountants seeking to grow their
career in a thriving business sector.
The progressive pace and constantly
changing landscape of the industry
presents unique challenges, cultivating
a culture of hard work, ambition and
perseverance. The rapid speed at which
the industry is growing has resulted
in somewhat of an absence of a glass
ceiling in terms of career progression.
Opportunities are presented and given
to those who are committed to, and
passionate about, their work.
Aircraft leasing is an exciting,
dynamic and unique industry that
can enable an ambitious accountant to
realise their true potential and allow
their career to truly take off.
DAVID BREEN
David Breen ACA is Head of Finance at
Avolon, which will soon be the world’s third
largest aircraft leasing firm.
www.accountancyireland.ie