Ground Support Worldwide

MAR 2016

The ground support industry's source for news, articles, events, product and services information.

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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?

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