Ireland a ‘centre of excellence’ for aircraft financing

Ireland’s reputation as a centre of excellence for aircraft financing and leasing has been enhanced in recent years, according to Dublin firm Matheson.

Rory McPhillips, asset finance partner at Matheson, said: “Aircraft lessors are attracted by Ireland’s favourable corporation tax regime, a wide double tax treaty network and professional expertise.

“These factors combined with a government that is committed to growing and supporting the industry have made Ireland the location of choice through which to finance and lease aircraft.”

Mr McPhillips said Ireland had also developed a vibrant aircraft securitisation industry, which allowed lessors, airlines and investors to access alternative funding from capital market sources.

He said the continuing strength of the aircraft finance markets is driven largely by healthy aviation industry fundamentals and balanced supply and demand for commercial aircraft.

Mr McPhillips said: “Air traffic is growing above long-term trends; oil prices are currently low; aircraft utilisation and load factors continue to rise; replacement demand remains strong and global airlines are producing record operating results and profits.”

He said the favourable Irish legal and tax regime coupled with the deep knowledge pool would continue to attract aircraft investment to Ireland.

Mr McPhillips added: “The Irish leasing market has been very active in recent years, with strong investment from the US, China and Japan.

“In particular, Chinese and other Asian based lessors continue to be attracted to Ireland and Matheson has advised a number of such recent market entrants on establishing their leasing platforms here.”