Ireland's aviation sector contributes significantly to the national economy, and more and more Chinese businesses are looking into setting up aviation operations there, attracted by the competitive advantages.

Four Chinese aircraft leasing companies have located their European headquarters in Ireland, including Industrial and Commercial Bank of China International Leasing, China Development Bank Leasing, Bank of Communications Financial Leasing, and China Construction Bank Leasing International.

The ICBC subsidiary, backed by state lenders, plays an increasingly important role in the growing aviation business and also has become one of the most prominent Chinese aircraft leasing companies.

The company was incorporated in Ireland in 2010 and is a wholly owned subsidiary of ICBC Ltd, the largest bank in the world by market capitalization. It operates in both aviation and shipping.

"Right now, we are the biggest Chinese financial leasing company not only in China, but also among the Chinese enterprises in Ireland," says Xu Wei, general manager.

ICBC Leasing's success is based on professionalism, marketization and internationalization, he says. "After the company was started, we kept to these three principles, and I believe by following these principles we make our achievements."

Xu says ICBC Leasing, as a newcomer, learns from other companies' experience. The staff is evenly divided between Chinese and non-Chinese, with the heads of human resources, finance and risk, and technician and legal departments all Irish. Their expertise has helped the company to develop quickly, Xu says.

The 10 biggest international aviation companies have operations in Ireland, which is regarded as the best place to engage in the aircraft leasing business, he says.

The business is very international, and hence corporate tax is important to where the company sets up. Corporate tax in Ireland, at 12.5 percent, is attractive for businesses, compared with Singapore at 17 percent, the United Kingdom at 20 percent, China at 25 percent and Germany at 30 percent.

"Compared with aircraft leasing companies set up in China, which have to abide by Chinese law, the operation in Ireland brings a competitive edge to the company.

"For a typical Chinese company to buy a Boeing or an Airbus plane and lease it to British Airways, it has to follow the Chinese tax system even though the operation is not taking place physically in China. However, for companies established in Ireland, in the same scenario, they have to pay only the preferential Irish corporate tax according to Irish tax law, which can help them offer a competitive price and make a profit," Xu says.

Ireland allows companies to deduct 12.5 percent income tax annually for the first eight years, he says, adding that some Asian countries are attempting to emulate Ireland to attract leasing companies.

A pool of qualified talent, coupled with a professional working environment and efficient government support systems, also are good reasons to invest in Ireland, Xu says.

ICBC Leasing's clients are primarily from the Chinese mainland and the Asia-Pacific region. The company has about 126 airplanes based in Ireland, which is less than half of its total aircraft globally. Once the company leases a plane, it is the client that is responsible for maintenance, Xu says.

"For the past two years, as more opportunities have been presented, we are more confident to go to the States, Middle East and Africa," he says, adding that the long-term strategy is to develop more customers from a variety of countries. "We have been sending out our Irish-based sales team to the United States as we believe the United States will be the most competitive market in the future."