Shannon as a location for aviation-related activities
www.shannonireland.com
Contents
Foreword................................................................................................................................................................................................................... 2
1
Introduction ........................................................................................................................................................................................................ 3
2
Shannon – At a glance......................................................................................................................................................................... 4
3
Ireland – At a glance ............................................................................................................................................................................ 5
4
Labor availability ....................................................................................................................................................................................... 6
5
Aviation Training and Education in the Shannon Region:................................................................. 8
6
Facilities................................................................................................................................................................................................................. 11
7
Incentives............................................................................................................................................................................................................. 13
8
Aviation-related activities at Shannon Free Zone.................................................................................... 16
9
Other financial service activities at Shannon Free Zone.............................................................. 22
10 Infrastructure ............................................................................................................................................................................................... 24 11 Living in the Shannon Region.............................................................................................................................................. 25 12 Shannon Development..................................................................................................................................................................... 28
Foreword Shannon, Ireland is synonymous with the world of 20th century aviation history, stretching back to the foundation of Shannon Airport in 1945, and before that to the early days of the flying boats at Foynes in County Limerick. The Shannon Free Zone was established by Shannon Development in 1959, specifically to ensure the survival and development of Shannon Airport, and to build on the new opportunities for foreign investment and tourism then emerging as an important economic sector. It was fortunate that all of these developments coincided with the opening of the country to external investment and the birth of the modern Irish economy as we know it today. In subsequent years the Zone went on to become a model for industrial development and foreign investment in other regions throughout the world. Today the Shannon Free Zone is still a critically important regional economic hub. It is home to 110 companies employing over 7,000 workers and generates over a3.5 billion in export sales annually across an impressive range of internationally-traded services and high-end manufacturing sectors. With some of the leading names in world aviation, such as GE Commercial Aviation Services, Shannon Aerospace, Lufthansa Technik, Hamilton Sundstrand, and others based in Shannon, aviation is now one of the strongest activity clusters. Over 30 companies are currently engaged in various aspects of the industry, and Shannon can justly claim to be Ireland’s premier aviation investment location. Existing companies provide a critical mix of aviation activities and services in one location, generating spin off opportunities including training, education and a strong local talent pool of aeronautical skills and expertise. Shannon Development promotes the aviation cluster at Shannon and is a key investment partner for existing company expansions and new projects considering locating here. With over 50 years’ experience, we are pleased to work with new companies wishing to locate in Shannon by offering a full range of assistance.
Dr. Vincent Cunnane, Chief Executive Officer
1 Introduction Ireland can now convincingly claim to be a knowledge economy, a claim reinforced by satisfying the World Bank Group’s four key pillars: 1) An Economic and Institutional Framework that ensures a stable macroeconomic environment, competition, flexible labor markets and adequate social protection. The 2007 Index of Economic Freedom, compiled by the Wall Street Journal and The Heritage Foundation, categorises Ireland as a ‘Free’ economy, and ranks Ireland 3rd out of 162 countries worldwide. It also states that ‘Ireland has one of the world’s most pro-business environments, especially for foreign businesses and foreign investment’ and that ‘Ireland’s policy framework promotes an open and competitive business environment’. 2) A Quality Education System that ensures that citizens are equipped to acquire, use, and share knowledge. The IMD World Competitiveness Yearbook 2008 ranks Ireland’s education system 8th from 55 countries surveyed for meeting the needs of a competitive economy. They also rank Ireland 9th for level of university education attained. 3) A Dynamic Information Infrastructure that can facilitate the effective communication, dissemination, and processing of information. Ireland has significant international connectivity capacity to support current and future enterprise activity. High levels of capacity and diversity have resulted in strong competition and very competitive prices. Ireland currently offers the lowest international leased line costs in the OECD. Ireland also has an extensive national fiber optic network. 4) Innovation Systems that bring together researchers and businesses in commercial applications of science and technology. Science Foundation Ireland (SFI) invests in academic researchers and research teams who are most likely to generate new knowledge and leading edge technologies and also advances cooperative efforts among education, government and industry.
2 Shannon – At a glance • Shannon Free Zone covers 240 hectares (600 acres) adjacent to Shannon International Airport, and is home to 110 companies with an employment level of 7,000 people generating over €3.5 billion in sales with over 90% in exports. • Overseas companies, attracted by a positive pro-business environment, low corporation tax and a well-educated, skilled workforce, use Shannon to serve global markets. • Key sectors at Shannon include: » » » » » »
Aerospace Technology Engineering Pharmaceuticals Healthcare Medical Devices
• Key business activities carried out at Shannon include: » » » » » » »
Customer support and Contact Centres Financial Services Supply Chain Management Shared Services Production Headquarters Research and Development
• Internationally-traded service activities now account for over 50% of enterprises and approximately 35% of employment. • Shannon has a highly-developed infrastructure, with modern telecoms, connectivity to the rest of Europe and the US, and a sophisticated network of service providers. • There is a ready availability of quality buildings to buy or rent at Shannon. • Excellent educational facilities including the University of Limerick (www.ul.ie) and the Limerick Institute of Technology (www.lit.ie).
Shannon Free Zone - Ireland
Distance From
Name
Miles
Kms
Nearest Town
Shannon
1
1.6
Population: 9,000
General
Nearest City
Limerick
15
24
Population: 76,000.
Capital City
Dublin
138
220
Population: 1million
Nearest Airport
Shannon
1.5
2.4
Scheduled daily services to Cont. Europe UK and US
Nearest Ro/Ro Port
Cork
79
126
Regular Sailings to UK and Cont. Europe
Nearest Container Port
Shannon- Foynes
35
56
Weekly container service to Rotterdam
Rail Station
Limerick
15
24
Inter-city rail links
Acute Hospital
Limerick
15
24
Provides an extensive range of medical services
3rd Level Institute
Limerick
15
24
University of Limerick and Limerick Institute.
3 Ireland – At a glance • Almost 1,000 overseas companies have chosen Ireland as their European base, and are involved in a wide range of activities in sectors as diverse as engineering, information communications technologies, pharmaceuticals, medical technologies, financial and international services and aviation. • These companies employ 135,000 people directly and sell a90 billion worth of products and services in world markets. • With 1% of the EU population, Ireland wins approximately 5% of all FDI into Europe.
The aviation sector in Ireland • The aviation industry in Ireland is diverse, ranging from maintenance, repair and overhaul (MRO) of aircraft, engines and components to aviation, airline call centres, financial and support services. It also includes the development of software and telecommunications for space contracts. • Overall, there are about 160 companies involved in aerospace in Ireland. The industry employs approximately 5,500 employees, of which 4,000 are employed in MRO, 900 in manufacturing, 500 in aviation services and 100 in aerospace activities. • MRO companies in Shannon include Shannon Aerospace (www.shannonaerospace.com) and Air Atlanta (www.airatlanta.com). • Leasing companies include: GE Commercial Finance Aviation Services (www.gecas.com), AerCap (www.aercap.com), Engine Lease Finance Corporation (www.elfc.com), Genesis Lease Ltd (www.genesislease.com), Shannon Engine Support Ltd (www.ses.ie) and Magellan Air & Aviation Services Ltd (www.magellanair.com and magellangroup.net). • Other companies operating in aviation-related activities in Shannon include: Phoenix American Financial Services Irl Ltd (www.pafsi.com), Omega Aviation Services Ltd (www.omegaaviationservices.com), Westair Aviation Ltd (www.westair.ie), Western Avionics Ltd (www.western-av.com), Hamilton Sundstrand Shannon (www.hamiltonsundstrandcorp.com), Lufthansa Technik Turbine Shannon (www.ltts.ie) and Lufthansa Technik (www.lufthansa-technik.com). • The Irish Aviation Authority carries out a range of operational and regulatory functions and services relating to the safety and technical aspects of civil aviation in Ireland, and has a significant ATC Operations and Training facility at Shannon.
4 Labor availability A. Skills availability • Many companies choose Ireland because of our unique workforce - Ireland has the youngest population in Europe, over 35% under the age of 25. Flexibility and Adaptability of Workforce 2008 when faced with new challenges
Future Availability of workforce % Population under 25 in the years 2010 & 2015
USA
34.4
33.5
Ireland
Ireland
34.1
33.2
USA
7.34
France
30.4
29.7
Netherlands
6.73
United Kingdom
30.4
29.5
Netherlands
29.6
28.6
Portugal
6.20
Europe
28.0
26.4
Hungary
27.0
25.6
Portugal
26.6
25.8
Czech Republic
26.1
24.3
Germany
24.9
Spain
25.1
Japan
23.3
22.1
UK
6.12
Czech Republic
5.82
Japan
5.44
Spain
5.27
23.4
Germany
4.99
24.7
Hungary
4.48
France
4.15
Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2006 Revision.
Labor Productivity 2007—GDP (PPP) per person employed per hour (US $) France
48.48
Ireland
47.40
USA
46.02
Netherlands
41.51
Germany UK Spain
7.80
Source: IMD World Competitiveness Yearbook, 2008.
Typical Irish Annual Pay Rates. Salary Range €’OOO pa.
Category
Finance Director
70-95
Financial/Mgt Accountant
43-60
Cost Accountant
47-55
Financial Accountant
47-55
39.87
Part Qualified Accountant
23-28
37.68
General Ledger Team Leader
33-38
35.18
Payroll Clerk
22-28
Credit Control +3 years experience
20-35
Business Analyst
35-40
Japan
31.60
Czech Republic
26.23
Hungary
24.59
Portugal
24.13
Source: IMD World Competitiveness Yearbook, 2008.
Accounts Receivable/Payable Manager
47-53
Accounts Receivable/Payable Team Leader
28-33
Accounts Receivable/Payable Clerk
20-25
*Benefits include bonus(10-15%), Pension & Health Insurance ** Plus performance related bonus
University Graduate Output by Field of Study 2005/06 Discipline
Cert./Diploma
H.Dip Degree/ Masters/ Ph.D
General Programs
107
15
122
Education
88
3,134
3,222
Humanities & Arts
332
5,910
6,242
Social Sciences, Bus. & Law
457
7,938
8,395
Sciences
118
4,203
4,321
Engineering, Mauf. & Constr.
32
2,060
2,092
Agriculture
44
288
332
Health & Welfare
753
4,655
5,408
Services Total Source: Higher Education Authority, April 2007.
Total
636
148
784
2,567
28,351
30,918
Selection of Comparative Labor Costs in Europe 2008 (€/hr) Employee
Ireland
UK
Germany
Netherlands
Junior Clerical/Admin Senior Clerical Senior Secretarial Technician—Entry level Technician—Senior level Supervisor Junior Accountant Senior Accountant Middle Manager Senior Manager Dept. Head General Manager (major branch opr.) Managing Director (subsidiary) Director
14.03 21.12 18.93 14.03 18.93 21.12 18.93 29.33 29.33 36.54 55.14 74.53 90.67 100.00
11.55 18.91 16.50 11.55 16.50 18.91 18.91 30.01 30.01 43.95 69.44 90.68 129.20 184.00
17.33 26.49 24.00 17.33 24.00 26.49 24.00 36.09 36.09 45.16 63.87 91.68 118.12 134.08
14.85 23.55 20.97 14.85 20.97 23.55 20.97 32.85 32.85 40.10 52.89 63.12 83.40 91.52
Source: Federation of European Employers, February 2008
Statutory Working Hours Country
Maximum daily hours
Maximum weekly hours
Average weekly hours
Ireland
13
48
39
Belgium
8
38
38
Denmark
13
48
37
France
10
48
38
Germany
10
48
38
Italy
13
48
38
Luxembourg
10
48
39
Netherlands
9
48
37
Portugal
8
40
38
Spain
9
40
38
UK
13
48
37
Source: EIRO March 2008
Working Hours and Holidays Employment legislation in Ireland governs a few crucial and basic areas. Maximum hours of work for industrial workers are set at 48 hours per week plus 12 hours overtime but in practice, the average is 39 hours per week. Statutory leave has been increased gradually over the last number of years in Ireland and now the statutory minimum is 4 weeks per annum.
Annualisation hours in Europe ‘Annualization’ or ‘annualized hours’ schemes allow employees’ working time (and pay) to be calculated and scheduled over the period of a year (or some other period longer than a week, if a broad definition is used). They are a means of achieving working time flexibility which has proved increasingly popular in a number of European countries in recent years, and which has been promoted by policy and recommendations.
5 Aviation Training and Education in the Shannon Region: A. Aeronautical Engineering at the University of Limerick. With 12,500 students, the University of Limerick provides a pipeline of well-qualified graduates to industries in the Shannon region each year, especially in the field of engineering. The Honours Bachelor Degree of Engineering in Aeronautical Engineering at the University has been on the curriculum since 1992. Accredited by Engineers Ireland, it is the only degree course in Aeronautical Engineering on offer in the country. Since its inception, the number of students has grown three-fold, and graduates have found employment within the region and beyond in the world aviation industry. Many graduates now hold senior positions in a wide range of leading aviation companies. A significant number of graduates also remain at the university to undertake aerospace research leading to higher advanced degrees. The program is of four years’ duration, and includes an eight month period of Cooperative Education in an appropriate aviation environment. The program consists of eight semesters, seven of which are spent on academic studies within the University and one which is spent in industry. The course provides a broad and practical program of study to give a good understanding of aircraft design, maintenance and operation. The business aspects of aviation operations are taught as part of a second year module - Air Transportation - which is reinforced by a fourth year module, Project Planning and Control. The University has established significant national and international links throughout the aviation industry which has enabled students to be placed in prestigious aerospace companies such as Boeing and Airbus. The flight mechanics module which is the laboratory element of this course is conducted in-flight with Cranfield University where students conduct a series of flight exercises in twin engine turbo-prop aircraft. The final year electives give students an opportunity to choose specialised modules, such as computational fluid dynamics (CFD) where the theory and application of industrial CFD software is studied.
B. The Irish Aviation Authority – Aviation Training The Irish Aviation Authority – IAA - is a commercial state-sponsored company established in 1994 to provide air navigation services in Irish-controlled airspace, and to regulate safety standards within the Irish civil aviation industry by: • Certifying and registering aircraft airworthiness • Licensing personnel and organisations involved in aircraft maintenance • Licensing pilots, air traffic controllers and aerodromes • Approving and monitoring air carrier operating standards. Internationally-set safety standards from the International Civil Aviation Organisation (ICAO); European Joint Aviation Authorities (JAA); EUROCONTROL; the European Civil Aviation Conference (ECAC), the European Aviation Safety Agency (EASA) and the European Union (EU) guide the IAA in ensuring that Irish civil aviation operates to the most stringent international safety standards. The IAA also utilises its expansive skill-set to provide technical training and consultancy at its own purpose-built training centre in Shannon, and internationally at customers’ own locations throughout the world. It has been in the field of aviation training for many years and offers a wide range of programs which include: • Air Traffic Control Training • Critical Incident Stress Management (CISM) • Safety Management Systems • Crisis Management Through its Education Partnership with Dublin Institute of Technology, the IAA offers a range of accredited 3rd level programs these include • Diploma in Management Studies Aviation • Honours BBS, Aviation • Executive Development Program In addition, the IAA also offers a number of training modules, accredited by FETAC - the Further Education and Training Awards Council, from its training facility at Shannon. The courses are designed for those currently employed in the aviation sector and are delivered on a part-time basis. Apart from the direct learning benefits, the courses provide a superb networking forum with participants from over 40 companies. The programs are delivered by a mix of industry experts and full-time academics.
C. Aeronautical Skills Training with FAS In a unique partnership with leading Shannon based aviation company Shannon Aerospace, FAS - the Irish Training and Employment Authority - offers an Aeronautical Skills Training Program from its training centre in Shannon. The aim of the course is to provide participants with a foundation in aeronautical skills to qualify them for employment in aviation-related manufacturing or service industries. The duration of the program is 42 weeks, at the end of which trainees can progress to a further 68 weeks on-the-job training program within Shannon Aerospace leading to a qualification in Aircraft Maintenance.
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6 Facilities Shannon Development Shannon Development offers a wide spectrum of property solutions, ranging from the sale of fully-serviced land sites to properties available to lease, e.g. manufacturing /logistics and distribution, and office units.
Property rentals Industrial property rents are in the range s6.50 to s8.50 per sq ft per annum (s70 to s92 per sq m), depending on the size, condition and level of fit-out of the premises. Office rents are in the range s10.00 to s19.50 per sq ft per annum, depending on the level of fit-out (s108 to s210 per sq m). In multi-tenant accommodation, a charge is levied by the landlord to cover basic running costs such as repair and maintenance, cleaning and janitorial services. For companies seeking to build their own premises, fully serviced green-field sites cost in the range of s425,000 to s450,000 per acre (s1.05 to s1.11 million per hectare) depending on location and site profile.
Lease terms Commercial property in Ireland is most commonly availed of under lease. The contract is evidenced in writing, and contains covenants and conditions governing the relationship between landlord and tenant. Typical long-term leases are for 20 years (or longer). It may be possible (subject to conditions) to negotiate break clauses at set points throughout the lease when the occupier can serve an agreed period of prior notice on the landlord and/or pay an agreed sum to the landlord to surrender the lease. Flexible lease terms can also be negotiated, i.e. four years and nine months, however these terms must be agreed in advance. Long-term leases are on full repairing and insuring terms, which place the onus on the occupier for the upkeep and repair of the premises. Provision for assignment or sub-let in long-term leases is standard, subject to the consent of the landlord.
Rent reviews Leases provide for increases in rent in line with market conditions at pre-determined points through the lease. For long-term leases the standard procedure is to allow for upward-only rent reviews at intervals of five years, in line with prevailing market conditions.
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Estate service charge An estate service charge is levied in industrial parks in respect of the upkeep and provision of common services and amenities, such as road maintenance, landscaping and public lighting. Charges are levied pro rata with the amount of space occupied. The current charge for the Shannon Free Zone is approximately a0.10 per sq ft per annum (a1.10 per sq m). Business rates are a form of local taxation payable to the local municipal authority (Clare County Council), which applies to commercial property only. The amount payable is based on a rateable valuation of the premises. The rateable valuation for a property is set by reference to the open market annual rental value of that property. For 2008, business rates were in the range of a1.00 to a1.50 per sq ft per annum (a11 to a16 per sq m).
Availability of properties from other sources In addition to the landlords referred to, it is also possible to lease and purchase properties in the Shannon Free Zone from both local and national estate agents. Many are based in Shannon, and can be contacted at their local offices or through Shannon Development.
Westpark Shannon (www.westparkshannon.com) is a s200m investment, featuring 1m sq ft of corporate real estate located on a 40-acre campus environment in the Shannon Free Zone. The flagship development comprises seven blocks of 115,000 sq ft (10,683 sq ms) each of world-class office accommodation. The campus is being designed with the demands of multinational organizations in mind, including connection to multiple international Tier-1 telecommunications networks, and the inclusion of a world-class Telehouse on the campus.
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7 Incentives Shannon’s incentives include: A. Corporation Tax • Ireland’s Corporation Tax rate of 12.5% is the lowest in the EU with the exception of Cyprus. This rate applies to all trading income. • Ireland’s Corporation Tax rate on passive income is 25%. • Ireland’s Capital Gains Tax rate is 22%. • Dividends may generally be distributed to EU or Treaty-resident companies without withholding tax.
Corporation Tax
2008 Corporate Tax rate for selected countries
Ireland United Kingdom
12.5% 28%
Belgium
33.99%
France
34.43%
Netherlands
25.5%
Spain
30%
Austria
25%
Germany
30%
China
25%
Czech Republic
21%
Poland
19%
Latvia
15%
• Ireland does not have ‘controlled foreign corporation’ rules.
Cyprus
10%
• Ireland does not have any ‘thin capitalization’ rules.
Lithuania
15%
Hungary
16%
• Group relief in relation to capital gains tax and trading losses is available to resident companies and branches of companies resident in the EU (carrying on a trade in Ireland). • Certain patent royalty income is exempt from tax (some research must be carried out in Ireland).
• Attractive holding company regime.
Luxembourg
29.63%
• Unlimited loss carry-forward.
Portugal
26.5%
Sweden
28%
Denmark
25%
• An extensive double taxation treaty network that continues to be expanded and updated. • Significant tax credits are available in respect of qualifying research and development work undertaken. This includes offset of the credits against previous and current years corporation tax liabilities.
Malta
35%
USA
39.5%
Source: Deloitte & Touche May. 2008
• Corporation tax for new companies, incorporated after 14th October 2008. The companies will be exempt from corporation tax on income and gains for the first three years, where the total amount of corporation tax payable does not exceed d40,000. Certain conditions will apply.
B. American Job Creation Act (2004) In October 2004, the American Jobs Creation Act of 2004 (the ‘Act’) became law. Changes to US tax provisions arising out of the Act have positive benefits for the aircraft leasing sector in particular. Under prior law, a US shareholder of a controlled foreign corporation (CFC) that generated ‘foreign base company shipping income’ was required to include such amounts in income as a dividend for US income tax purposes, regardless of whether such income was actually repatriated back to the US. Foreign base company shipping income was generally defined as income derived from the use of aircraft or vessels in foreign commerce, the performance of services in connection with the use of such aircraft or vessels, and the sale or other disposition of such aircraft or vessels.
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The Act repeals this tax treatment and, consequently, opens the door for significant tax deferral benefits for US corporations conducting shipping activity through foreign corporate affiliates. Specifically, to the extent that the foreign corporate affiliates are conducting their activities in low-tax jurisdictions (e.g. Shannon), the corporate group (through appropriate tax planning) may be able to significantly reduce its effective tax rate with respect to its shipping operations. The Act also provides a safe harbor for certain rents derived from leasing aircraft and vessels in foreign commerce, in order to ensure that such rents will not be treated as SubPart F Income to the US shareholder. Specifically, these rents will be excluded from the definition of SubPart F Income to the extent that the rents are derived in connection with the conduct of an active trade or business by the lessor – which for these purposes will be deemed to be the case, provided that the active leasing expenses of the lessor are not less than 10% of its profit on the lease.
C. Employment Taxes Individual Tax and Social Security • Employers are obliged to pay PRSI contributions. • The general rate applying is 10.75%. This may be lower, depending on the level of salary. • Pension contributions paid on behalf of employees are tax deductible. There is no statutory obligation to pay pension contributions on behalf of employees. However, it is common practice for a company to contribute in the range of 5-10% of the employee’s salary. Under recently introduced legislation, all employers must offer the facility of setting-up a PRSA-type pension plan where there is no existing pension plan in place. • Employees are generally liable to PRSI at a rate of 4% of all earnings, except the first s127 per week and up to a ceiling of s52,000. • The PRSI rate is applied to the gross salary and benefits after deduction of pension contributions. • Foreigners resident and working in Ireland are generally covered by the Irish social security system, provided that the necessary documentation is in place. • Levies amounting to 2% on all income are payable except by those earning s500 per week or less. Levies at 2.5% apply on income earned over s1,950 per week. • PRSI contributions: Ireland provides a high level of coverage with respect to fullrate social insurance contributions, e.g. dental, health, unemployment benefits, state pension and maternity benefits. • There are competitive income tax rates in Ireland. The first s36,400 is taxed at the standard rate of 20%, and the balance taxed at 41%. There are options available to married couples that enable a higher standard rate band to be allocated to one spouse up to a maximum of s45,400. • An income levy applies to all income earned from 1st of January 2009. This levy is 1% of total income, with higher rates applying to income in excess of s1,925 per week.
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Expatriate Tax • Generally, Irish resident and domiciled individuals are taxed on worldwide income and gains. • Expatriates who are ‘non-domiciled’ in Ireland are liable to tax on a remittance basis in respect of income arising outside of Ireland. Since 1 January 2006, income from a foreign contract of employment where the duties are performed in Ireland are taxed in Ireland under the PAYE system.
D. Grant Incentives Shannon Development may provide financial assistance to companies wishing to locate in Ireland or expand their existing operations here. The unique characteristics of any proposed project will determine the incentive package available, in particular its location. Shannon Development evaluates potential projects through a process of negotiation. The main criteria applied to determine the availability of grant incentives include: • The quality of employment created and likely employment levels • Long-term stability of the industry concerned • Suitability of the project to Ireland’s long term industrial policy The types of grants that are available include: • Employment Grants • Research and Development (R&D) Grants • Training Grants • Capital Grants Ireland also offers one of the most beneficial corporate tax environments in the world. A corporation tax rate of 12.5% applies to all corporate active trading profits. The grant, when approved, is usually paid when a job is created. Note: All grant payments to projects approved under the EU National Regional Aid Scheme 2007-2013 must be approved prior to the start of work on the project. Aid may only be granted under the scheme if the beneficiary has submitted an application for aid, and Shannon Development has subsequently confirmed in writing that, subject to detailed verification, the project in principle meets the conditions of eligibility laid down by the scheme before the start of work on the project. If work begins before the conditions laid down in this paragraph are fulfilled, the whole project will not be eligible for aid.
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8 Aviation-related activities at Shannon Free Zone
General Electric GE is a diversified technology and services company dedicated to creating products that make life better, from aircraft engines and power generation to financial services, medical imaging, television programming and plastics. GE operates in over 100 countries and employs more than 315,000 people worldwide.
GE Commercial Aviation Services GE Commercial Aviation Services (GECAS) is the commercial aircraft financing and leasing business of General Electric. GECAS owns a fleet of 1,450 aircraft that it leases to more than 225 airlines in some 70 countries, and it manages nearly 300 aircraft for others. GECAS offers a full range of fleet and financing solutions, including operating leases and secured debt financing, engine leasing through its engine leasing unit, and pilot training through its aviation training unit. Most of the GECAS-owned fleet is made up of modern Airbus and Boeing narrowbody and widebody aircraft and freighters. The fleet, with an average age of about six years, also includes regional jets from Bombardier and Embraer. GECAS offers a variety of aircraft financing plans to airfreight operators around the world, and currently maintains a fleet of approximately 100 owned and managed freighters. GECAS has a freighter conversion program in place to convert Boeing 737, 747 and 767 passenger aircraft into freighters. GECAS’s Engine Leasing unit leases and finances GE, CFMI, Rolls-Royce, Pratt & Whitney and IAE aircraft engines. The unit offers a full range of services, including short-term rentals, operating leases, structured finance transactions, engine exchanges and guaranteed availability programs to give airlines additional flexibility in their operations. GECAS recently introduced an Aircraft Component Management service that helps airlines finance and manage their rotable and repairable spare parts. This service reduces capital investment, lowers costs and improves on-time performance. The Memphis Group, a GECAS company, is the world’s third largest supplier of aviation parts, offering comprehensive parts supply chain management and financing. LynxGroup, a GECAS affiliate, designs and manages innovative on-airport CargoPort solutions to help facilitate crucial aviation infrastructure. The combined employment of GECAS and Shannon Engine Support Operations at Shannon is approximately 250 people.
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AerCap Group AerCap Group provides aircraft leasing and related products to airlines and asset management services to third parties such as investors and banks. Through its new subsidiary AeroTurbine, AerCap will be in a position to offer engine leasing, part trading and related services to its existing and potential aircraft leasing customers, thereby providing more flexibility to its client base. AerCap currently has a total owned and managed fleet of 220 modern aircraft leased to 85 airlines in 45 countries. Together with the 70-aircraft-order placed in December 2005 in conjunction with joint venture partner LoadAir, AerCap has over 82 new A320 family aircraft on order. Headquartered at Amsterdam’s Schiphol Airport, AerCap has offices in Shannon, Ireland and Fort Lauderdale, Florida.
Genesis Lease Limited Genesis Lease Limited (‘Genesis’) is a global commercial aircraft leasing company headquartered in Shannon, Ireland. Genesis acquires and leases modern, operationally-efficient passenger and cargo jet aircraft, and currently has 45 aircraft on lease to 32 airlines in 18 countries throughout the world. Genesis leverages the worldwide platform of GE Commercial Aviation Services Limited - or GECAS - to service its portfolio of leases, allowing management to focus on executing its growth strategy. Genesis had a highly successful IPO in December 2006, through which its common shares, in the form of American Depositary Shares, are listed on the New York Stock Exchange under the symbol ‘GLS’. The public offering, together with private placements of shares to General Electric Company, the exercise of an over-allotment option by the underwriters and the offering of floatingrate aircraft lease-backed notes in a securitization transaction, raised over $1.6 billion in capital for the Company. The innovative series of transactions was awarded ‘Overall Deal of the Year’ by the prestigious aviation industry publication Airfinance Journal. In April 2007, Genesis closed a $1 billion senior secured credit facility with a syndicate of lenders to support the future growth of the Company. The Company’s Chairman and CEO is Limerick-man, John McMahon, who has more than twenty years’ experience in the aviation industry, gained with Aer Lingus, GPA Group, GECAS and Debis AirFinance (now AerCap), of which he was a founding member. Most of the Genesis senior management team have returned to Ireland after many years overseas, including Chief Financial Officer, Alan Jenkins, who was previously with AWAS, an aircraft leasing company based in Australia, and Chief Commercial Officer, Cian Dooley, who was with Boeing in Seattle.
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Shannon Engine Support Shannon Engine Support (SES) is the industry’s leading lessor of CFM56 spare engines. Based in Shannon, Ireland, SES is a wholly-owned subsidiary of CFM International (CFM). CFM is a 50/50 joint company formed by Snecma Moteurs and General Electric Company, and produces the world’s best-selling commercial engine product line, the CFM56 family. SES has a portfolio of 160 CFM56 engines, including the CFM56-2 for the DC-8 Super 70 series, CFM56-3 engines for the Boeing 737-300/-400/-500, the CFM56-5A and CFM56-5B for the Airbus A320 family, the CFM56-5C for the Airbus A340, and the CFM56-7 for the 737-600/-700/-800/-900. The company supports 40 customers and a fleet of more than 450 aircraft worldwide.
Engine Lease Finance Corporation Engine Lease Finance Corporation (ELF) is one of the world’s leading engine-financing and leasing companies specialising in the provision of flexible, medium to long-term spare engine support packages for the airline industry. Headquartered in Shannon, Ireland, ELF is owned by BTM Capital Corporation of Boston, USA which is a wholly-owned subsidiary of The Bank-of-Tokyo Mitsubishi Ltd, one of the world’s largest financial institutions. ELF also has offices in San Francisco, and representatives in Boston, London and Singapore. ELF provides extensive funding, independent of third party financiers, thereby ensuring low-cost, flexible financing for the customer. ELF’s client base includes some of the world’s most established airlines, engine and airframe overhaul service providers, aircraft leasing companies and OEMs. ELF offers a comprehensive range of individually tailored financing and leasing-based products and services including, Operating Leases, Sale and Leaseback, Engine Acquisitions and Re-marketing, and Management of Customer Engine Assets.
Phoenix American Financial Services Inc Phoenix American Financial Services Inc is a subsidiary of Phoenix American Incorporated, the parent of a group of diversified financial service companies founded in 1972. Building upon experience in creating and managing investment funds, they provide a comprehensive range of business services: investor services, financial accounting, tax, and cash management. Application-only services are also available. PAFS offers clients the economies of scale, professional experience and the full benefit of proven systems, controls and procedures developed and refined over the past 30 years. All services are managed by our trained staff of accounting, investor service and information technology professionals, all of whom are dedicated and focused on servicing the needs of our clients.
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Magellan Group Magellan Aviation Services specializes in airframe and component spare parts for all Boeing Commercial Aircraft and Airbus A300, A310 & A320. Magellan offers sales, leasing, exchange and inventory consignment services to customers all around the globe. It has two bases of operations - Shannon, Ireland and Boca Raton, Florida. The Shannon operation was set up originally in 1989 as GPA Pacific Aero, then became AGES Shannon, and later Volvo Aero Services. It currently has a staff of fifteen people who are all highly trained experts in the field of aircraft and engine spares distribution. Both the Shannon and Boca Raton operations work from custom-built facilities. All the management and staff have a broad range of skills, and this, combined with many years experience in various sectors of the aviation business, results in a very professional operation. Magellan is approved by the Irish Aviation Authority as a stockist of aircraft spares - approval no. IAA/1141/94. (The IAA is a member organization of the Joint Airworthiness Authorities.) The Quality Management System of Magellan Aviation Services is certified to ISO 9002 standard and the company is also FAA-AC-0056 accredited.
Shannon Aerospace Shannon Aerospace specializes in performing heavy maintenance checks (C and D Checks) on Boeing 737, 737 NG, 757, 767, McDonnell Douglas MD-80 and Airbus A320 family aircraft, as well as offering a comprehensive range of specialist services. Since 2003, Shannon Aerospace has been a 100% subsidiary of Lufthansa Technik AG, the leading MRO provider with its main base in Hamburg, Germany. Its FAA and EASA approved Shannon-based facility includes five maintenance lines, two painting bays and workshops. It also includes in-house training facilities, which incorporate some of the industry’s most advanced training methods. During the past decade, the facility has attracted an enviable reputation for its reliable turn-around times and consistent record of releasing aircraft back to commercial service on time. Located at Shannon Airport, the Shannon Aerospace Hangar is a purpose-built facility, and was developed from a greenfield site in 1990. The total production space of 35,640 sq ms comprises hangar space (14,702 sq ms), Workshops/Stores (17,285 sq ms) and offices (3,653 sq ms). Over 60 airline customers have come to Shannon Aerospace since the hangar’s opening in 1992.
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Air Atlanta Aero Engineering Based at Shannon Airport, Ireland, Air Atlanta Aero Engineering (AAAE) has been dedicated to excellence in aircraft maintenance for over 40 years. The company is one of Europe’s leading aircraft maintenance organizations focusing on Boeing 737, 757 767,747 and 727 aircraft. As a member of the Air Atlanta Aviation Group, AAAE provides high-quality aircraft maintenance services to the airlines within the Group, and to third party operators and leasing companies. Airlines within the Group include Air Atlanta Icelandic, Air Atlanta Europe, Islandsflug and Excel Airways. AAAE is EASA/JAA and FAA-approved to perform maintenance services including up to and including D-Check, modifications, SB and AD incorporation, CPCP and Ageing Aircraft Programs, avionic modifications and upgrades, planning and engineering services, cabin reconfiguration, storage programs and painting.
Hamilton Sundstrand Hamilton Sundstrand is a global corporation with various business units that design, manufacture and support aerospace and industrial products for worldwide markets. The company’s aerospace business provides electric power generating, distribution, management and control systems; fuel and special fluid pumps; engine control systems; gearboxes; primary and secondary flight controls and actuation systems; ram air turbine emergency systems; auxiliary power units; environmental control systems; propeller systems; torpedo propulsion systems; launch vehicle hydraulic power units; and electronic controls and components. Hamilton Sundstrand products serve the commercial, military, regional and general aviation markets. The company employs 16,000 worldwide and has annual sales of about $3.6 billion. Hamilton Sundstrand Shannon is a fully certified provider of motor and generator components rewind services to the aerospace industry worldwide. The company holds certification from the JAA, FAA, CAAC,TCA and ISO 9001:2000, and has a combined rewind and repair capability of 1,100 parts. HS-Shannon was founded as Shannon Aircraft Motor Works in 1988, and was acquired by Hamilton Sundstrand in 1998. The facility is the first of its kind to specifically handle rewind of electrical aerospace, and serves both commercial and military aerospace customers worldwide. Hamilton Sundstrand celebrate 20 years in Shannon.
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Lufthansa Technik
The Lufthansa Technik Group is the world market leader in the Maintenance, Repair and Overhaul (MRO) of commercial aircraft, aircraft components and engines. With customized programs for maintenance and state-of-the-art repair procedures, Lufthansa Technik continuously assures the reliability and availability of its customer fleets. The company’s global network consists of 25 operating subsidiaries and affiliates in Europe, Asia and the United States, and serves over 370 customers worldwide. Lufthansa Technik Turbine Shannon (LTTS) specializes in the repair of components for both high and low-pressure turbines for CFMI and GE engines. LTTS is a member of the EPAR (Engine Parts and Accessories Repair) Network, a platform established within Lufthansa Technik to bring together the complete engine parts and accessories repair services of the group. LTTS is licensed by General Electric and CFMI (Original Equipment Manufacturers of aircraft engines) to carry out repairs in accordance with their engine shop manuals, making it unique as one of a small number of companies outside of the OEM Engine manufacturers who are licensed to carry out repairs.
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9 Other financial service activities at Shannon Free Zone
St Andrew’s Group St Andrew’s Group is a subsidiary of HBOS plc. We specialise in creditor insurance for HBOS customers and business to business clients. Creditor insurance allows customers to protect repayments on their mortgages, personal loans and credit cards in the event of unemployment, sickness and death. Business functions located at Shannon include Underwriting, Customer Services, Product & Market Development, Finance, HR, Training and IT. Since 2001, our company has grown from 55 colleagues to over 340 in 2009. The decision to locate our operations in Shannon was primarily influenced by the availability of an educated and experienced workforce in the locality and the proximity to an international airport. St Andrew’s Group is a registered name for Halifax Insurance Ireland Limited, a private company limited by shares (registered in Ireland, number 323923) whose registered office is situated at Dromore House, East Park, Shannon, Co Clare. VAT registration number: IE6343923R.
GE Money GE Money employs almost 500 people in Ireland, and is a provider of specialist financing products and services such as personal loans, mortgages and car finance to businesses and individuals across Ireland. GE Money is the consumer financial services brand of GE Consumer Finance (GECF). With more than $155 billion in assets, GECF is a unit of General Electric Company, and is a leading provider of credit services to over 118 million consumers, retailers and auto dealers in 48 countries around the world. GE Consumer Finance, based in Stamford, Connecticut, offers a wide range of financial products, including credit, bank and store cards, mortgages, debt consolidation and home equity loans, banking products and credit insurance. More information can be found online at www.geconsumerfinance.com. GE (NYSE: GE) is a diversified services, technology and manufacturing company with operations worldwide.
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Genworth Financial Genworth Financial is among the largest US insurance and financial services holding companies, with more than $105 billion in assets, employing more than 6,900 people in 24 countries, and serving the needs of 15 million customers worldwide. Born out of GE Insurance Services, Genworth is a leading provider of payment protection and other insurance products in Europe. Distribution partners include most of the major financial institutions in the countries they operate in. Payment protection insurance helps consumers meet their payment obligations on outstanding financial commitments, such as mortgages, personal loans or credit cards, in the event of a misfortune such as illness, involuntary unemployment, temporary incapacity, permanent disability or death. At Shannon, Genworth’s Centre of Excellence provides high quality creditor, personal accident and travel insurance administration to UK and Irish-based clients. Service levels are tailored to individual client requirements covering speed of answering and turnaround of paper correspondence, including sophisticated tracking systems to monitor service levels. Genworth employs approximately 400 full-time employees in a 50,000 sq ft facility.
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10 Infrastructure Air Transport Shannon International Airport has undergone a s58m expansion, boosting capacity to 4.5m passengers. In October 2008, the Irish and US governments agreed to full preclearance facilities for all US bound flights from Shannon. Full Pre-Clearance at Shannon will allow passengers from Shannon to arrive in the US as domestic passengers with no standing in line for Immigration or Customs. It will also allow Shannon passengers to make hassle-free transfers at US hubs with considerable savings in time. For airlines, it will allow seamless connections at US hubs and allow carriers to use less expensive domestic airports in the US. Shannon flies to and from the following: Origin/Destination
Atlanta
Krakow
Nottingham (East Midlands)
Barcelona
Liverpool
New York JFK
Birmingham
London (Heathrow, March 2009)
Newark
Boston
London (Gatwick)
Paris (Beauvais)
Bristol
London (Luton)
Paris CDG
Brussels (Charleroi)
London (Stansted)
Philadelphia
Chicago
Madrid
Toronto
Dublin
Manchester
Venice (Treviso)
Düsseldorf (Weeze)
Milan (Bergamo)
Warsaw
Edinburgh
Minsk (Belavia)
Glasgow (Prestwick)
Nantes
Road Transport Shannon has excellent national connectivity. The road infrastructure comprises the national N18 and the regional and R472 roads.
Telecommunications Shannon offers a state-of-the-art telecommunications infrastructure with full broadband connectivity linked to the national backbone. The telecommunications market in Ireland is fully deregulated. Approximate Cost of International FreeFone € per minute (excluding VAT) Band Origin of Call
International Freefone Subscriber Subscription Option 1
2
3
4
5
6
7
8
9
10
Subscription Cost of each Option (Ä) Base Rate
50
650
2,000
5,000
7,500 10,000 15,000 20,000 30,000 40,000
1
UK
.1679
.12
.11
.10
.09
.09
.09
.08
.08
.07
.07
2
Near Europe
.3149
.18
.17
.16
.15
.14
.13
.12
.11
.10
.09
3
Mid Europe
.3988
.24
.23
.21
.19
.18
.17
.16
.15
.14
.13
4
Far Europe & North Africa
.7618
.53
.52
.50
.44
.42
.39
.37
.36
.36
.32
5
USA & Canada
.2413
.17
.17
.16
.13
.13
.12
.10
.09
.09
.09
7
Australia, New Zealand, Japan, .7089 Singapore & Hong Kong
.50
.49
.46
.45
.42
.41
.41
.39
.38
.35
8
Middle East & South Africa
1.028
.72
.70
.67
.59
.59
.59
.59
.54
.52
.50
9
Rest of Pacific Rim
1.015
.71
.70
.67
.58
.41
.41
.41
.40
.40
.40
Source: Eircom, April 2008. The subscription cost is the committed monthly spend after discount.
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11 Living in the Shannon Region Shannon and the Shannon Region has always been a place to enjoy and live life to the full, relax, be entertained and experience the variety of lifestyles on offer all year round. Whether you are interested in sports, culture, shopping, or just enjoy a quiet afternoon in town, the Shannon Region has something to suit every social and recreational taste. The Shannon Region is a place of great natural beauty, embracing the counties of Clare, North Kerry, Limerick, South Offaly and North Tipperary. Limerick City is the historic capital of the Region. The region is bordered by the Atlantic coastline, where you can enjoy cliffs, beaches and coves along Europe’s most westerly shores. In this compact area, 190 kms from end to end, you will discover stunning landscapes, seascapes, great sporting activity, top class entertainment and visitor attractions. The Shannon Region is well served with a range of visitor attractions which include castles, folk parks, museums, mediaeval banquets, theatre and cinema.
10 Top Hotels in Shannon Region Dromoland Castle The Marriott Limerick The Clarion The SAS Radisson Limerick Strand Hotel Castletroy Park The Dunraven Arms Bunratty Castle Hotel Park Inn (Airport) Adare Manor
The University Concert Hall, Limerick is Ireland’s first purpose-built concert hall and is the permanent home of the Irish Chamber Orchestra. UCH is a 1,000-seat venue playing host to a variety of live entertainment, concerts, recitals, drama, comedy, dance and grand opera. The Belltable, Limerick, is the principal Arts Centre in the Shannon region offering the best of theatre, music, dance, visual arts, and cinema, while Glór Irish Music Centre, located in Ennis, Co. Clare, provides a variety of styles, traditions and genres of live music as well as other arts activities. The d14m Sports Arena at University of Limerick includes four basketball/soccer/ volleyball /badminton courts, a 60m sprint track, a suspended 225m jogging track, gymnasium and health and fitness centre, 50m Olympic Size swimming pool, diving pool and Astroturf all-weather pitches. Eating out in the Shannon Region offers a range of fine-dining and casual restaurants as well as traditional Irish nights. The Region offers a full range of accommodation from luxury castle hotels and manors to comfortable family-run hotels and guesthouses, as well as first-class hotels for the business traveler.
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10 Top Restaurants in Shannon Region Fine Dining
Bistro/Casual Dining
Gallaghers Brulee’s Earl of Thomond The Mustard Seed The Wild Geese
The Corner Stone The Town Hall The Bali Room Durty Nelly’s The Locke Restaurant
The Shannon Region lends itself to the relaxing game of golf. Golfers benefit from the vast range of golf courses, including world renowned links courses at Lahinch and a great new course at Doonbeg. A wide choice of residential property is available, from modern executive houses to older, traditional homes in a range of urban, suburban and rural living. Housing costs in the Shannon Region is almost 34% lower than in Dublin on the East Coast. The average house price in the Region is d220,000 versus d334,822 in Dublin. Housing in the Shannon Region Type
To Buy
To Rent
4 Bed Detached 3 Bed Semi Detached 2 Bed Apt./Townhouse
€350-€400,000 €200-€250,000 €150-€180,000
€850-950 per month €700-800 per month €550-650 per month
Source: Sherry Fitzgerald, Shannon. 2008
High-quality education is available for all ages, with schools at both primary, postprimary and third level colleges to meet the specific needs of families relocating to Shannon. The needs of families with children at pre-school age are also well-catered for in the region. Regional Health Services are excellent with three acute hospitals within a 50 mile radius, as well as access to good-quality dental and private medical facilities. Shannon is well-served by a high-quality road network which is supported by a first-class public transport system. This offers very short commuting times, typically between 10 and 30 minutes, for people living and working in the town, or from surrounding towns such as Ennis and Limerick. These compare very favorably with those of major urban centres such as Dublin, where commuting times in excess of 90 minutes are not unusual. 5 Top Things to do within an Hour’s Drive of the Shannon Region Galway city - home to the famous Arts Festival, Oyster Festival and the Galway Races Birr Castle Demense and Gardens - and watch out for the National County Fair A trip to the Aran Islands from Doolin Clonmacnoise - the ancient monastic settlement and West Offaly Railway at Blackwater Bog Coole Park near Gort, followed by the Yeats Centre at Kiltartan
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Some Interesting Things to do in the Shannon Region Go surfing in Lahinch or scuba-diving off Kilkee, Co. Clare Dolphin Watching on the Shannon Estuary
Play a round of golf in any one of over 30 golf courses locally
A concert in the showcase University of Limerick Concert Hall, home to the Irish Chamber Orchestra and Irish World Music Centre
A drive to The Cliffs of Moher followed by lunch in Ballyvaughan or New Quay
Take a weekend walk in the Burren followed by afternoon tea in the Tea & Garden Rooms in Ballyvaughan, or the Doolin Craft Gallery
A lakeshore drive around Lough Derg, or take to the water for a cruise around the lake.
Visit the many tourist attractions such as Bunratty Castle and Folk Park or the Ailwee Caves, Co. Clare
Visit Adare Village , Co Limerick, a winner of Ireland’s Tidiest Town Competition
‘Angela’s Ashes’ walking tour of Limerick
A performance or exhibition at the Belltable Arts Centre in Limerick
For more information on all the Shannon Region has to offer go to: www.shannonregiontourism.ie
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12 Shannon Development
Shannon Development is the Irish government agency responsible for promoting Shannon as a location for overseas investment and assisting companies already established here. Shannon Development assists with: • Comprehensive information on business opportunities at Shannon, key business sectors and the Irish economy • Advice on how to proceed when setting up a business at Shannon • Introductions to relevant contacts including, local industry, utility providers and professional service providers such as lawyers, accountants, and recruitment companies • Assistance in arranging visiting programs • Support in finding companies for possible joint ventures or technology licensing arrangements • Identifying suitable property solutions
For further information on Shannon contact: Nick Ryan or Kevin O’Connor Shannon Development Town Center Shannon, Co Clare Ireland Telephone: +353 61 361555 Email: ryann@shannondevelopment.ie or oconnork@shannondevelopment.ie marketing@shannonireland.com www.shannonireland.com
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The information contained in this publication is intended as a summary only. While care has been taken in its production, no responsibility is taken by Shannon Development or its author or other contributors for any errors or omissions. Professional advice should be sought in all cases. March 2009
For further information on Shannon contact: Nick Ryan or Kevin O’Connor Shannon Development Town Center Shannon, Co Clare Ireland Telephone +353 61 361555 Email: ryann@shannondevelopment.ie or oconnork@shannondevelopment.ie marketing@shannonireland.com www.shannonireland.com