When Tony Ryan founded Guinness Peat Aviation in 1975, he had no idea that Ireland would become the leading centre for aircraft leasing globally.
Now, some 69 per cent of the world’s leased aircraft – valued at more than €274 billion – are managed from Ireland and our flourishing aviation finance industry comprises more than 50 companies, including 14 of the world’s top 15 aircraft lessors.
According to Marina Efthymiou, professor of aviation management at Dublin City University Business School, Ireland’s success stems from its early-mover advantage, the specialist talent that developed here as a result, and a stable legal and fiscal framework that reduces cross-border costs. “This foundation, combined with strong legal, technical and financial expertise, created a sophisticated ecosystem that continues to attract global aviation finance,” she says.
Five decades later, Prof Efthymiou says Ireland’s strengths lie in its ecosystem density and institutional maturity. “The clustering of specialised service providers facilitates efficient aircraft trading and asset management, while long-term policy consistency provides confidence in a highly regulated, capital-intensive sector,” she notes. In addition, “knowledge spillovers” within the cluster continue to support innovation in financing structures and risk assessment.
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Ibec’s Elizabeth Bowen is director of Aircraft Leasing Ireland. She tells The Irish Times that the significant global reach and importance of Ireland’s aircraft leasing sector cannot be understated. “Our rich aviation heritage, stable legal and regulatory framework, comprehensive double tax treaty network and pro-enterprise policies have all played a part in making aircraft leasing a significant and growing sector within the Irish economy,” Bowen says.
She echoes Efthymiou, noting that Ireland’s wealth of talent in this specialist area is what really sets it apart. Ireland is “unmatched as a location” for aircraft leasing expertise, she says “and we are continuing to bring the next generation of talent through”. A range of high-quality aviation courses are on offer through various institutions across the educational spectrum, while Bowen also highlights how industry-supported apprenticeships are ensuring the continued supply of an appropriately skilled workforce.
This has also been augmented by the continuing growth of aircraft leasing businesses based in Ireland, says Séamus Ó Cróinín, partner in aviation and transport finance with A&L Goodbody. “Despite the twin shocks of the Ukraine invasion and Covid-19, the sector has demonstrated its resilience and continues to expand, attracting new investors and talent to Ireland,” he points out. “This has created a deeper pool of talent and related business opportunities, which in turn has further consolidated Ireland’s position as a go-to jurisdiction for asset owners and investors in the sector.”
This is “hugely positive” both for the Irish economy and for Irish graduates, he adds. “As it continues to expand, the Irish aviation finance and leasing sector offers some of the most attractive employment opportunities in the Irish jobs market.”
Bowen also points out that Irish-based lessors are playing a significant role in progressing aviation’s drive to net-zero. “Some 95 per cent of the aircraft that our member firms have on order are new-technology aircraft, which deliver an improved sustainability performance,” she says. “This investment in the next generation of the fleet shows the progress the sector is making on sustainability.”
Ethymiou agrees that environmental sustainability is reshaping aviation finance, saying decarbonisation pressures influencing asset values, fleet strategies, and credit assessments. “Lessors are central to enabling the transition to more fuel-efficient aircraft.”
She also notes that technological advances – including digitalisation, predictive analytics and generative AI – are improving asset management, risk modelling, and documentation processes. “Combined with ongoing supply-chain constraints and new sources of private capital, these trends point to a sector increasingly characterised by sustainability alignment, technological sophistication and continued global relevance.”
Ó Cróinín highlights another key trend within the industry, which is the growing consolidation among aviation lessors. “Our clients tell us that this wave of consolidation is something that will continue throughout 2026 and it will be vital that Ireland continues to offer an attractive proposition for the larger players who emerge from this round of consolidation.”
Indeed, while Ireland has built a hub for aviation leasing around a stable economic and regulatory environment, to continue to succeed in a competitive landscape, industry experts agree it must maintain its reputation as a predictable and commercially conscious regime.
“This means ensuring measures or policies do not bring additional costs and complexity for aircraft leasing and support aviation’s pathway to net zero in 2050,” Bowen says. “This long-term certainty is crucial for the sector, given the nature of its contractual obligations to customers – with leases often running for eight-12 years – and rising growth in competitor jurisdictions such as the US, UAE, Singapore and elsewhere.”
Yet Efthymiou warns that international tax reforms, particularly OECD Pillar Two, may erode aspects of Ireland’s competitive positioning. “Geopolitical uncertainty, sanctions risks and emerging competition from Asia and the Gulf create additional pressures,” she says. “Sustained investment in talent development will also be essential to maintain Ireland’s leadership.”
As Ireland continues to develop its importance and attractiveness to international capital seeking to invest in aviation assets, Ó Cróinín says it is inevitable that further competition will arise from other global financial centres. “The ongoing developments and changes in the global world order increase the likelihood of other jurisdictions looking to manage or operate aviation assets within their borders or within new economic systems or partnerships,” he says.
“To stay ahead it will be vital that Ireland continues to focus on its competitiveness and flexibility as a jurisdiction to attract both capital and talent. Ireland must focus strongly on finding new ways to accommodate capital, and in a manner which meets the needs of international investors.”
