Opportunities for Airline Industry in Ireland

1. Government Incentives
Two of Irelands three major airports, Dublin and Cork Airports, are wholly
owned by the Government and are run under the auspices of the Dublin Aviation
Authority. This allows the aviation industry the opportunity to avail various
industry specific incentive schemes. The Dublin Route Support Scheme is one
such example that offers airlines discounted rates on qualifying charges over a 5year term to encourage airlines to commence long haul routes via Dublin airport.
The discount may apply to passenger service charges, aircraft parking charges,
aerobridge use charges and runway movement charges. On the lines of the route
support scheme for long haul operations, DAA has initiated a similar scheme for
short haul operations that encourages airlines to fly to new routes (within 2500
nautical miles) from Dublin Airport that currently no other airline provides.
The Dublin Airport Growth Incentive Scheme is another example that benefits
the airline industry. The aim of the scheme is to increase passenger traffic
through Dublin by offering a full rebate on passenger service charges
retrospectively if the traffic recorded at Dublin airport surpasses the air traffic
recorded in the previous years.
With an aim to increase air traffic, the Dublin Aviation Authority has also
developed a transfer incentive scheme that encourages airlines flying from a
qualifying origin to a qualifying destination via Dublin airport. The five-year
scheme offers airlines financial rewards on a sliding scale per transfer passenger.

2. United States Pre-Clearance Facilities

Ireland is the only country in the EU and among a few in the world that has
signed a pre-clearance facility with the United States. This agreement allows
passengers departing from Dublin or Shannon airport to complete immigration
and border control procedures at the origin and be treated as domestic
passengers on arrival. This offers passengers a greater level of comfort and
avoids them undergoing any unnecessary delays.
3. Favorable Tax Regime
The Air Travel Tax first introduced in the 2009 budget for flights departing from
airports in Ireland was abolished in 2014. The Irish Government has reiterated
its stance on maintaining the 12.5% corporate tax rate and has expanded its
double tax treaty network to 71 countries. The favorable tax system has
encouraged investment from Japan and China in the aircraft leasing industry.
Ireland is also one of the founding members of the Cape Town Convention and
Aircraft protocol, which ceases international standards of registration which has
led to greater interest in aircraft financing and leasing.
4. Visa Schemes
The introduction of the Irish short-stay visa waiver program in 2011 was
another move aimed at increasing tourism and air traffic into Ireland from
emerging markets. This scheme essentially allows citizens of 16 nations
including, Bahrain, Saudi Arabia, United Arab Emirates, India and China who
have entered the United Kingdom to travel to Ireland without the need of a
separate visa.
Developed on the lines of the short stay visa waiver scheme, in July 2014, the
Department of Justice and Equality in conjunction with the UK home office
announced the British Irish visa scheme. This scheme allows Chinese and Indian
nations to travel to and around the common travel area on a single visa (Either
UK or Ireland). This scheme will be implemented worldwide by 2016.

5. Air Traffic Agreements and Rights

Licenses issued by the Commission for Aviation Regulation, Ireland allow airlines
to operate freely within the European Economic Area. Irelands aviation security
and services decision has also signed bilateral air transport agreements with
over 50 nations that assist in facilitating air services to various markets.
6. Maintenance, Repair and Overhaul
Due to its ideal geographical position that requires transatlantic flights to
stopover at Ireland, proximity to suppliers and a highly skilled workforce,
Ireland offers the best and highly sophisticated maintenance repair and overhaul
operations to a range of narrow and wide bodied aircrafts for various
commercial airlines.