Irish jet leasing firm Avolon posts a 33% increase in profits
Irish aircraft leasing firm Avolon saw profits rise 33 percent to $58m in the third quarter of the year as the company benefited from a mix of lease revenue and jet sales.
Avolon is currently in the process of being sold to China’s Bohai Leasing in a deal that places a $7.6bn enterprise value on the business.
The firm said that total revenue in the latest quarter rose 23pc to $201.9m and leasing revenue for the quarter amounted to $180.6m.
The company took delivery of $350m worth of new aircraft in the period. It delivered eight aircraft to seven customers in six countries in the three months to the end of September.
Avolon’s committed fleet for delivery in 2016 now stands at 29 aircraft valued at $1.7bn. At the end of the third quarter, Avolon owned 144 aircraft, managed 10 and had 104 on order.
Avolon was founded in 2010 and only appeared on the New York Stock Exchange last December. The company will continue to be based in Ireland following its sale.
The group said that its effective tax rate in the latest quarter was just 7 percent, compared to 2.5 percent for the three months ended September 2014. Avolon is incorporated in the Cayman Islands and domiciled in Ireland, whereas its predecessor, Avolon Investments, was incorporated in Luxembourg.
“The increase to the effective tax rate in the current period was due to an increase in pre-tax income in Irish taxable entities while the tax benefit of non-taxable income stayed relatively constant,” Avolon noted.
Avolon is currently the ninth biggest jet leasing company in the world. It has five global offices and employs 62 people.
Following its acquisition, it’s believed the plan is to grow its business aggressively to make it more than five times its current size. Its airline clients include China Airlines, AeroMexico, KLM and Japan Airlines.
