Avolon executives share €27m in pay as revenues soar
Revenues reach $1bn though aircraft leasing company also records pre-tax loss of $9.6m
In 2018, Taoiseach Leo Varadkar opened Avolon’s new global headquarters in Ballsbridge, Dublin. Photograph: Robbie Reynolds
Aviation entrepreneur Dómhnal Slattery and his managerial colleagues at Avolon Aerospace Leasing Ltd shared pay of $30.54 million (€27.44 million) in 2018.
New accounts filed by Avolon Aerospace Leasing Ltd show that the Co Clare businessman and other key management personnel shared the sum in “short term benefits”.
The payout represents a 20.5 per cent increase on the $25.4 million paid to key management personnel in 2017.
The bumper pay came as revenues at the company and its subsidiaries topped $1 billion for the first time. The accounts show that turnover jumped 19 per cent from $876 million to $1.04 billion.
However, the company recorded a pre-tax loss of $9.6 million. That compares with a profit of $121.2 million in 2017. At the end of 2019, Avolon globally owned or managed 525 aircraft.
2018 was a year of significant expansion at the company which was only established in 2010. Taoiseach Leo Varadkar opened Avolon’s new global headquarters in Ballsbridge, Dublin.
The number of people employed in the business jumped by 50 to 232 and the accounts show that “compensation and benefit expenses” increased by 40 per cent from $78.5 million to $109.9 million.
The company’s legal and professional fees totalled $18.9 million, office expenses amounted to $15.9 million, travel expenses came to $19.3 million and “other expenses” totalled $14.5 million.
The firm’s revenue was made up of lease revenues of $841.7 million and “other revenues” of $205 million.
Operating profit for the year of $560 million includes a $17.9 million gain on the sale of aircraft. At the end of 2018, the firm’s aircraft had a book value of $7 billion. Among the highlights of the year, the directors include the sale of 31 aircraft and the purchase of nine aircraft.
The accounts show that Asia and the Pacific was the company’s biggest market, accounting for 44 per cent or $372 million in revenues, with Europe, the Middle East and Africa accounting for 34 per cent, or $282 million. Revenues in the Americas totalled $187 million or 22 per cent of the total.