Irish arm of former aircraft lessor GE Capital posts €1.4bn profit

The main Irish unit of what was GE Capital aircraft leasing arm last year recorded pretax profits of $1.425 billion (€1.378bn).

Celestial Aviation Services Ltd, formerly known as GE Capital Aviation Services Ltd , was last year purchased by AerCap as part of a wider deal to purchase the global business of GE Capital Aviation Services. Under the terms of the deal General Electric last year received 111.5 million newly-issued AerCap shares, $23 billion in cash and $1 billion of AerCap notes.

The new accounts for the Shannon-registered Celestial Aviation Services Ltd show that it paid out a dividend of $3.14 billion last year. The dividend was paid out to parent firm Celestial Aviation Funding Unlimited, which in turn paid a dividend of $3.35 billion to AerCap Aviation Leasing Limited.

The $1.425 billion pretax profits at Celestial Aviation Services last year represent a seven-fold increase on the $202 million pretax profits for 2020.

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The accounts for Celestial Aviation Services Ltd show that it paid out corporation tax of $1.2 million on the pretax profits of $1.42 billion. The accounts show that based on the Irish corporation tax rate of 12.5 per cent, corporation tax of $178.12 million would have been owing. However, the tax charge was reduced by $371.27 million due to “non-taxable items” offset by $199 million on impairment on financial investments.

The company also availed of $6 million in “tax decrease arising from group relief”.

The firm’s revenues last year increased by 35 per cent from $203.53 million to $275.7 million, with an operating profit of $38.62 million.

The company received $2.97 billion in dividends income offset by $1.59 billion in non-cash impairments. Those contributed to the pretax profit of $1.42 billion.

Numbers employed last year increased from 206 to 256 and staff costs rose from $46.8 million to $76.6 million that included $14.2 million in “other compensation costs” while wages and salaries totalled $56.92 million.

Directors’ pay increased from $7.67 million to $9.3 million that is made up of $8.55 million in pay, $570,000 in pension contributions and $196,000 in benefits in kind.