EMBASSY OF BELGIUM
Economic & Commercial Attaché
Brussels-Capital Region
Walloon Region of Belgium
Aeronautics and space industry in Ireland
Ireland has a strong tradition in the aeronautic sector with national companies such as Aer Lingus
(founded in 1936), Guinness Peat Aviation (set up in 1975 and taken over in 1992 by General Electric
Commercial Aviation Services) and the more recently established (1985) low-cost airline company
Ryanair. Thanks to its tax benefits and the skilled workforce, Ireland attracted a significant number of
big companies who over the years have given the possibility to the country to become one of the most
flourishing countries in Europe.
The aviation industry in Ireland is diverse, ranging from maintenance, repair and overhaul (MRO) of
aircraft, engines and components to aviation, airline call centres, financial and support services. It also
includes the development of software and telecommunications for space contracts. The majority of
business is located in Dublin and Shannon, with some airline activity in Cork, Waterford and Donegal.
Overall, there are about 160 companies involved in the aerospace industry, which has about 5,600
employees – 4000 are employed in MRO, about 900 in manufacturing, 600 in services and 100 in
space activities.
The structure and depth of the industry in terms of ownership and diversity, has strengthened
dramatically since the early 1990s. At the opening of the decade, most Aerospace activities in the State
were the ancillary activities of just two Irish companies (Aer Lingus and GPA) whereas today, some
twenty multinational overseas corporations are involved, many of them leading players in the global
aerospace industry.
MRO
In terms of industrial activities, the profile of aerospace enterprise in Ireland is predominately made up
of MRO operations, with manufacturing activities still on a relatively small scale in volume terms. In this
respect, it differs from the major players in aerospace among EU countries whose aerospace industrial
activities include strong components of Original Equipment Manufacture (OEM)
Ireland’s MRO and supporting service industry has many competitive advantages for aviation. These
include the existing industry and infrastructure, the international language of aviation, a track record of
success, the company tax regime and the overall expertise that has built over many decades.
The industry encompasses MRO in all its facets, including specialist restorations of critical parts of
aircraft engines and components, manufacturing and services ranging from seat fabrics to mobile
access towers for MRO work, and financial services. There is also a growing segment working on
space contracts.
AIRCRAFT LEASING
In terms of international traded aerospace services, aircraft leasing is by far the dominant activity. As a
result of the favourable tax status of Shannon Free Airport and Dublin’s International Financial Services
Centre (IFSC) and the innovative approach of companies located in the State to this kind of business,
Ireland has become a leading world centre for aircraft leasing and related services.
2 Shrewsbury Road
Ballsbridge
Dublin 4
Ireland
Tel: +353 1 269 2617/18
Fax: +353 1 260 4132
info@brussels-wallonia.ie
www.brussels-wallonia.ie
EMBASSY OF BELGIUM
Economic & Commercial Attaché
Brussels-Capital Region
Walloon Region of Belgium
The aircraft-leasing sector was established in Ireland by GPA in 1975 and has grown steadily since
then aided by the supportive taxation regime. Because of the pioneering work of GPA, Ireland has
established a reputation as a worldwide centre of excellence for aircraft leasing and has attracted
substantial front office operations to Ireland. There is no other sector in international financial services
where Ireland has established such a leading position. It is estimated that 34% of the world’s fleet of
leased commercial aircraft are managed from Ireland.
Aviation leasing companies in Ireland manage almost €83 billion in assets, equating to almost 3,400
aircraft. The tax regime is very important to the choice for companies to establish their company in
Ireland. The tax environment not only incorporates the corporation tax rate of 12.5% but also Ireland’s
suite of bilateral taxation treaties with other countries.
The aircraft leasing sector currently employs 990 people in Ireland (610 in leasing companies and 380
equivalent full time staff in professional firms supporting the sector).
A survey reveils that around 95% of the companies in the leasing sector valued the importance of the
tax regime in Ireland very high and very important in their choice of location for a cross border leasing
business.
SOFTWARE DEVELOPMENT
Other International Traded Services that are growing include software development, communications,
training and the supply of skilled personnel for the Aviation and Aerospace Industry.
During the 90s (the days of the Celtic Tiger), the Federation of Aerospace Enterprises in Ireland was
founded (1994). The FAEI is the national trade association representing all interested parties involved
in the Aerospace Industry in Ireland.
Specialist aviation software has come to prominence in recent years. In 2002, the FAEI (Federation of
Aerospace Enterprise in Ireland) Software group was formed. As Ireland is the number one software
exporter in the world and aerospace a significant consumer of software, this was an appropriate group
for FAEI. Ireland is also in a good position to offer services and products in new ICT areas, such as onboard internet access, in-flight entertainment technologies, digital documentation and other wireless
applications. A fresh crop of start-up Irish ICT companies is focusing on these areas. According to the
Aerospace Software Group, which is affiliated with the FAEI, these advances in aviation technology are
opening niche markets in maintenance and in the repair and overhaul of aircraft.
Continuous investment in research and development is a major priority for Irish suppliers in this sector
and some of the EU funded programmes offer opportunities for co-operation with other European
companies.
SPACE INDUSTRY
The involvement of Ireland in the space industry is small but nonetheless significant. Ireland plays an
active role in the European Space Agency development programmes with over 60 Irish companies
having participated to date. The base of Irish industry participating in ESA programmes has been
continuously evolving and now encompasses companies in a range of sectors including precision
engineering, telecommunications, software development, advanced materials and electronics.
2 Shrewsbury Road
Ballsbridge
Dublin 4
Ireland
Tel: +353 1 269 2617/18
Fax: +353 1 260 4132
info@brussels-wallonia.ie
www.brussels-wallonia.ie
EMBASSY OF BELGIUM
Brussels-Capital Region
Walloon Region of Belgium
Economic & Commercial Attaché
MAIN COMPANIES
MRO companies:
Air Atlanta www.airatlanta.com
Shannon Aerospace www.shannonaerospace.com
SR Technics Ireland www.srtechnics.com
Leasing companies:
AerCap www.aercap.com
Air Contractors Ireland www.aircontractors.com
AWAS www.awas.com
Engine Lease Finance Corporation www.elfc.com
Magellan Air & Aviation Services www.magellanair.com
GE Commercial Finance Aviation Services www.gecas.com
Genesis Lease Ltd www.genesislease.com
Orix Aviation Systems www.orixaviation.com
Shannon Engine Support www.ses.ie
Other companies operating in aviation-related activities:
Airbus Financial Services www.airbus.com
Apollo Aviation Services www.apollo.aero
Bombardier Aerospace www.bombardier.com
Composites Testing Laboratory www.compositestestinglab.com
Hamilton Sunderstrand Shannon www.hamiltonsunderstrandcorp.com
Lufthansa Technik Turbine Shannon www.ltts.ie
Lufthansa Technik www.lufthansa-technik.com
Phoenix American Financial Services www.pafsi.com
Omega Aviation Services www.omegaaviationservices.com
Triumph Interiors www.triumphgroup.com
Westair Aviation www.westair.ie
Western Avionics www.western-av.com
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2 Shrewsbury Road
Ballsbridge
Dublin 4
Ireland
Tel: +353 1 269 2617/18
Fax: +353 1 260 4132
info@brussels-wallonia.ie
www.brussels-wallonia.ie