Profit of €30m for air lease firm

A Shannon-based aircraft engine leasing firm employing only 22 people made a pre-tax profit of $39.4 million (€30.1 million) last year.

Accounts filed to the Companies Office show US-owned Shannon Engine Support Ltd increased its pre-tax profits by 22 per cent from $32.2 million to $39.4 million in the 12 months to the end of December last.

The increase in profits came in spite of revenues dropping by 13 per cent from $110.3 million to $95.4 million. The firm paid a dividend of $28.1 million last year.

The directors’ report says it was a difficult year for the industry. “The company has been successful in negotiating lower lease rate on some of its leased in assets and additionally, there have been cost savings achieved as a result of the impact of falling US dollar interest rates on other leased in assets.”

The company’s operating profit also increased by 5 per cent from $24.7 million to $26 million. This account of $35.6 million in non-cash depreciation charge.

Established in 1988 and part-owned by US giant GE, Shannon Engine Support provides support to 140 airlines around the world.

The accounts show that the company’s profits were boosted by an exceptional item of a profit of $11.1 million from the sale of fixed assets, which followed a profit of $6.6 million on the sale of fixed assets in 2010.

The company had accumulated profits of $463 million at the end of December last.

The company’s 22 staff each received on average $163,665 in salaries and pensions, with the aggregate pay-out being $3.5 million.

An analysis of the company’s turnover shows that Asia Pacific is now the company’s biggest market, with revenues increasing to $35 million. Europe was the firm’s largest market in 2010 and it last year lay third generating $20.6 million in revenues.