The cost of housing in major cities across the world has been skyrocketing over the past few years. The trend has led to a domino effect on various industries, one of which is the jet leasing sector. According to a new report by PricewaterhouseCoopers (PwC), housing costs are driving unsustainable pay demands within the industry. The report reveals that high housing costs in major business hubs such as New York, London, and Hong Kong are forcing employees to demand higher pay to meet their basic living expenses. This article will delve deeper into the findings of the report and explore the implications of the rising housing costs on the jet leasing sector.
Executives in Ireland’s global aircraft leasing sector have stated that the cost of doing business in the country poses the largest challenge they face. A PwC report reveals that the already highly-paid sector is experiencing pay demands that are “unsustainable.” The aircraft leasing sector contributes approximately $1bn to the Irish economy every year and supports over 8,500 jobs. The report emphasizes the need for Ireland to remain competitive in its aviation leasing sector to maintain its position as a worldwide leader. However, high levels of personal taxation in Ireland continue to present a significant challenge. The report suggests extending and fine-tuning the Government’s Special Assignee Relief Programme to cater more effectively to new hires.
As the aviation industry continues to recover from the impact of the pandemic, it is clear that the issue of housing costs and its knock-on effect on pay demands is one that cannot be ignored. The findings of the PwC report highlight the urgent need for the industry to address this issue and work towards developing sustainable solutions that will benefit employees and companies alike. It is only by adopting a proactive and collaborative approach that we can hope to overcome these challenges and secure a prosperous future for the jet leasing sector.
