Ireland's aviation leasing industry contributes US$975 million to Ireland's economy, supporting nearly 8,600 jobs

11 April, 2023

The aviation leasing industry's total contribution to Ireland's economy is US$975 million (€897 million) supporting 8,543 jobs. This is according to PwC's report 'Taking flight 2023: An economic & employment analysis of the aviation leasing industry in Ireland', published today. This follows PwC’s inaugural report in January 2018.

Yvonne Thompson, Leader, PwC Ireland Aviation Finance Practice; Joe Conboy, Partner, PwC Ireland Aviation Finance Practice; Michael McGrath, T.D., Minister for Finance and Marie-Louise Kelly, Chair, Aircraft Leasing Ireland.

l-r: Yvonne Thompson, Leader, PwC Ireland Aviation Finance Practice; Joe Conboy, Partner, PwC Ireland Aviation Finance Practice; Michael McGrath, T.D., Minister for Finance and Marie-Louise Kelly, Chair, Aircraft Leasing Ireland

The PwC report benchmarks the current economic footprint of Ireland's aviation leasing industry. Its findings are based on responses to a detailed survey provided to members of Aircraft Leasing Ireland (ALI), the representative body for aviation leasing in Ireland. The report reveals key financial, staff and other metrics as well as gathering insights on policy areas, ESG, diversity and educational impacts while also identifying key threats and opportunities. 

Launching the report, Michael McGrath, T.D., Minister for Finance, said: “This is a very valuable report measuring the Irish aviation leasing industry and its potential. The aviation sector in Ireland is a significant contributor to the Irish economy in terms of the number of jobs created, the amount of revenue generated and, of course, the knock-on effects for the economy generally. Government will continue to support the industry and take actions to ensure Ireland remains the leading worldwide hub for aviation leasing firms long into the future.”

Joe Conboy, Partner, PwC Ireland Aviation Finance Practice, commented:  “The rate of growth highlighted in the survey reflects an Irish aviation industry that continues to show resilience despite some extensive geopolitical, ESG and other challenges. The industry serves as a flagship for the rest of Ireland's international financial services industry and demonstrates that Ireland can attract and retain decision makers and be a global leader in finance. It is a provider of highly skilled jobs, not just directly within the aviation leasing sector itself, but also in the wider professional services industry which supports it. It is important that Ireland’s aviation leasing industry stays ahead of the game and remains cognisant of the fact that Ireland's position as a global leader in aviation is fragile and needs to be nurtured in order to enable it to continue to grow.”

Marie-Louise Kelly, Chair, Aircraft Leasing Ireland, said: “On behalf of Aircraft Leasing Ireland, I welcome the publication of this report by PwC, which reaffirms what we in the industry know – that aircraft leasing is both a critical enabler of the global aviation industry and a highly valuable contributor to the Irish economy. Despite the challenges of recent years, the aircraft leasing sector has shown remarkable resilience, increasing its contribution to the local economy, and providing even more highly-skilled local jobs. ALI remains focused on driving aviation to a sustainable future and we will continue to work with PwC, and other partners, to ensure Ireland retains its leadership position as the global centre for aviation leasing.” 

Key findings in the report include:

Contribution to Ireland's economy is US$975 million (€897 million)

Based on 2021 data, the report reveals that the Irish aviation leasing industry contributes US$975 million (€897 million) to Ireland's economy, an increase of 26% from US$771 million (€709 million) when last reported in early 2018. This comprises Irish suppliers’ expenditure of US$823 million (€757 million) and payroll exchequer contributions of US$152 million (€140 million). Gross payroll to aviation leasing employees is US$387 million (€356 million). 

Jobs up 71%

Based on 2021 data, the research reveals that full-time equivalent jobs supported (directly and indirectly) by the aviation leasing industry in Ireland are 8,543, up 71% from 4,970 when last  reported in early 2018. Many of the individuals working directly in the industry are key decision makers in senior management positions.

Aircraft numbers expected to grow 26%

Underpinned by pent-up demand, respondents reported growth expectations in Irish based aircraft numbers of 26% between 2022 to 2025. The largest proportion of this growth is expected to be fueled by additional fleet leased to Asia, followed by South and Central America and Europe. 

Lease income - Asia surpasses Europe 

Asia's share of Irish lease rental income has increased to 43% in 2021, up from 33% in 2018 when last reported. This makes Asia by far the largest market for Irish aviation lessors, surpassing Europe, which was the largest market in 2018.  

Europe’s share of Irish lease rental income is 23%, down from 35% in 2018 and is the second largest market. Surprisingly, the North American market has contracted by approximately 5% between 2018 and 2021.

More to do on gender diversity 

The report highlights that the aviation leasing industry has more work to do when it comes to gender diversity including establishing formal structures for reviewing diversity and inclusion. Almost 66% of respondents only had up to 25% female representation at a C-Suite level. Outside of the C-Suite, three-quarters (75%) of aviation leasing companies reported female representation to be only between 25% and 50% across all employees. 

Societal impact 

Irish aviation lessors also contribute to the Irish economy at a societal level. Lessors make an average financial contribution of US$265,000 per annum to Corporate, Social and Responsibility (CSR) programs including average employee hours donated of 554 per annum. 45% of survey respondents provide support at third level education while 38% offer graduate programmes. 

Cost of doing business greatest challenge

The cost of doing business in Ireland (including interest rates and inflation) ranked as the top challenge facing the Irish aviation leasing industry with respondents specifically referencing the cost of housing and the cost of living driving pay demands to unsustainable levels. Significant new challenges such as sustainability and Environmental, Social and Governance (ESG) will change the landscape of the industry over the coming years. Other key challenges include competitive tax regimes in other jurisdictions, international tax reform creating a growing degree of tax uncertainty and Ireland’s personal income tax system with a marginal income tax rate significantly higher than competitor jurisdictions. The report calls for further improvements in the Special Assignee Relief Programme (SARP). 

Yvonne Thompson, Leader, PwC Ireland Aviation Finance Practice, concluded: “While Ireland's extensive double tax treaty network was ranked as the top driver behind Ireland's success as a global centre for aviation leasing, there is a need for its continued expansion and improvement.  

“Ireland has an excellent image as a reputable corporate domicile and positive working relationship with EU and other markets. This provides opportunities for the industry as it further bolsters Ireland’s attractiveness as a location for aviation leasing.” 

“The talent pool which the sector has built up in Ireland over the last four decades has provided a real competitive advantage to the industry. However, continued focus on a strong pipeline of educated employees in the sector is critical. Ireland has the opportunity to become a leading global provider of education courses to support the global aviation industry and Government and industry support in achieving this would be greatly appreciated.”  

Notes to editors

Link to the report

About the report

The PwC report benchmarks the current economic footprint of Ireland's aviation leasing industry. The report findings are based on responses to a detailed survey (covering 60% of global aviation lessors ) which was provided to members of Aircraft Leasing Ireland (ALI), the representative body for aviation leasing in Ireland. The report reveals key financial, staff and other metrics as well as gathering insights on policy areas, ESG, diversity and educational impacts while also identifying key threats and opportunities. 


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Johanna Dehaene

Corporate Communications, PwC Ireland (Republic of)

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