In my industry, content is king. In business though? Consistency is key. Reliable, all-inclusive payments allow ground handlers with lease heavy GSE fleets to plan for the long term rather than navigating surprise break downs and the necessity for fleet back-ups.
Additionally, an all-inclusive leasing system can include training budgets for new employees and continuing education to maintain situational awareness for those already on staff.
“There should be naturally ongoing training regardless of what you're buying,” Neil Bennett, managing director at Somerset Aviation Capital, says. “I think that's just a general safety thing that everyone should be doing.”
All that planned training can come in handy when the lease ends and ramp staff has the opportunity to get brand new equipment – often decades before that equipment would reach the ramp. Brand new equipment, maintenance, training and a consistent monthly payment? Sign me up. You know, if I were in the market.
Sure, by definition leasees don’t own their GSE outright, and they don’t get that sweet, sweet resale money. But they also don’t have the hassle of selling their own equipment. Leasing seems to be a simplified way of acquiring equipment, not to mention being a client instead of an owner. It just makes life easier for maintenance and repair. And sure, the payments never end if you lease the fleet. But leasees have brand new, reliable equipment on the ramp and new stuff coming in all the time. Fewer machines, more productivity, less responsibility.
On the manufacturer side, regular lease turnover churns demand in the GSE industry. New leases often demand new equipment, and GSE leasing firms have reason and necessity to buy shiny new equipment for their clients.
All that used equipment can go a couple of different ways. A quick refurbishment and some maintenance can get it back on the ramp in another lease or, after that 20-year-old tractor runs its life cycle, make a sale and ship it out to fuel that boom going on in the BRIC countries.
Is this all a touch altruistic? Absolutely. But we could all use a little more altruism in our lives.
What’s your fleet strategy? Ownership? Leasing? A combination of the two? Let me know @GroundSupportWW on Twitter or email me, [email protected].
