Tariffs ‘won’t threaten’ Ireland’s pole position in jet-leasing sector, says Avia boss

Avia Solutions Group founder Gediminas Ziemelis says sector has strong roots.

Ireland’s position as the top global centre for aircraft leasing is unlikely to be impacted by the trade war between the United States and the rest of the world, according to Gediminas Ziemelis, executive chairman and founder of Dublin-­headquartered Avia Solutions Group.

He said the ecosystem of lawyers, accountants, consultants and other factors such as taxation and the legal system are embedded in a way that makes it tougher for other jurisdictions to muscle in on the sector.

Avia Solutions Group is the world’s biggest aircraft wet-leasing operator, providing aircraft, crew, maintenance and insurance to its clients. It has a fleet of 210 narrowbody aircraft, with a plan to boost that to 700 by 2030.

It also has a huge aircraft maintenance, repair and overhaul (MRO) business, which operates around the world and in which the company is heavily investing.

Asked if tariffs will threaten Ireland’s dominant position in the aircraft-leasing sector, Mr Ziemelis said they should not.

“I don’t think so because this wasn’t built in a year,” he said.

“It started from the first leasing company, GPA. Ireland for many years has been recognised as the capital of aircraft-­leasing industry.

“It is treated as a stable environment for aircraft lessors across the globe. In aviation, nothing happens fast.”

He noted that in Dubai, the Al Maktoum International Airport, which is also known as Dubai South, is expected to be significantly advanced by 2032.

It is anticipated the airport, which will replace Dubai International Airport, will eventually be able to handle 260 million passengers a year and 12 million tonnes of cargo.

“By 2032, or 2035, when Dubai South will start to open, it will be the biggest aviation hub in the world,” Mr Ziemelis said.

“Of course, we will grab some market share for leasing, but I don’t see lessors moving out of Ireland.”

Last November, just days after Donald Trump secured his second term as US president, Avia placed a firm order for 40 Boeing 737 Max jets and secured an option over 40 more.

Mr Ziemelis, who was speaking from Dubai, said the order was placed using an Avia firm based in the Dubai free zone, and that the aircraft will eventually be used wherever clients require them.

He said he does not think that even if the current uncertain backdrop regarding tariffs was in motion that Avia would have opted instead to buy jets from Airbus.

“The US might be the planemaker, but it depends on where the aircraft are used,” he said.

“We can select the jurisdiction. At the end of the day, the consumer will pay for it.

“The drivers for our business are not tariffs. First of all, it’s passenger traffic, and this year there will be more than last year.

“The second driver is seasonality. Every airline company in winter in Europe is losing money.

“Our goal is to educate the market on how to leverage summer and winter capacity in Europe and leverage summer and winter capacity in Latin America and Asia-Pacific.”

 

According to Irish Independent.