MARCH 2016 AviationPros.com 11
OF
FINANCE
THREE LEASING
OPTIONS
FAIR MARKET VALUE
Lessees put no money down and
begin a monthly payment. At the end
of the lease (generally three or fve
years), the lessee has a number of
options:
• Purchasing the GSE outright
• Continuing on a month-to-month
basis
• Negotiate a new lease
DOLLAR-OUT
This is basically a loan. The lessee
owns the equipment after a three or
fve year lease
CONTRACT LEASES
Ground handlers are the general target
for contract leases. The fast-paced
nature of handling contracts means
that handling frms need lots of equip-
ment on ramps around the world in
a matter of weeks, if not days. Those
contracts can dry up just as quickly as
they come in, so maintaining leases
over the terms of contracts allows for
easier operations. Additionally, ground
handlers with existing contracts can
use their lease agreements as a
renegotiation tool with clients. Do they
want new equipment or is the current
GSE working as needed?