US finance specialist, CIT, is moving a €2.4 billion aircraft leasing business that will employ 30 people to the Republic.
New York-listed CIT, which has an operation in Blackrock, Co Dublin, is basing its Aerospace International leasing business in the city's International Financial Services Centre (IFSC).
The company buys aircraft from manufacturers Airbus and Boeing and leases them to airlines, mainly in Europe and Asia, the two regions for which the Dublin office will have responsibility. CIT Aerospace International expects to have €2.4 billion worth of aircraft under the management of its Dublin office by the end of the year.
Speaking at the opening of the office in Dublin yesterday, CIT Aerospace president, Jeff Knittel, predicted that this would increase to €4 billion by the end of 2007. The company plans to take delivery of six new Boeing 737 NG aircraft at various stages next year, and 24 Airbus A320s through 2007 and 2008.
It has orders placed up to 2012 and 2013. The company said yesterday that it was one of the biggest purchasers of new aircraft from both manufacturers.
CIT Aerospace has more than 200 commercial jets and 110 regional aircraft leased to airlines around the globe. It has over €5.4 billion worth of assets on its books.
The company has over 120 clients. According to Frank Pray, managing director of the Dublin operation, the fact that many of them are based outside the US was one of the factors that prompted CIT to open its international business in the Republic.
"Our biggest growth opportunities are now in Europe, Asia and the Middle East," he said.
"Currently, the majority of our clients are non-US based, so it's important that we have a strong international base from which to serve these clients."
The Republic is a recognised centre for aircraft leasing because its tax regime combines the 12.5 per cent corporate rate with a high number of bilateral treaties.
This means that companies based here do not face the risk of paying tax both here and in the jurisdictions to which the aircraft are leased. Most of those agreements date back to GPA, the Shannon-based leasing operation established by businessman Tony Ryan.
CIT's facility in Blackrock provides equipment finance and leasing to businesses. It is a separate division to aerospace and employs 250 people. Overall, the company's Irish workforce will approach 400 when its aircraft finance leasing business is at full capacity.
