Why GSE Leasing Is Poised for Growth in North America

Ground Support Worldwide recently spoke with Erin O'Donnell, president of HiSERV North America, about the company's recent launch in the United States and Canada, the evolving role of GSE leasing, electrification challenges, data-driven fleet management and what the future might hold for airport ground operations.

Listen to the podcast here. 

GSW: HiSERV North America officially launched earlier this year. What has the response been like so far?

O'Donnell: We launched HiSERV North America in March, and the response has been overwhelmingly positive. We're only a couple of months into operations, but we've been welcomed by airlines, ground handlers, airports and the broader aviation community.

The company has a strong foundation in Europe, where HiSERV has spent more than a decade building a successful leasing platform. Bringing that experience and expertise to North America has generated significant interest because customers are looking for flexible, financially strong partners who can help them address a variety of operational challenges. Whether it's a short-term rental, a long-term lease, fleet monetization or maintenance support, customers are looking for solutions, and we're excited to provide them.

GSW: Before we talk more about HiSERV, tell us a little about your own aviation background.

O'Donnell: Aviation and the smell of jet fuel has been in my blood since I was a teenager. My first job was actually as an intern at Chicago Midway Airport. At the time, I was the airport's first intern, so the role was a little bit of everything. I worked with airport operations, administration and project teams. I filed paperwork, got coffee and helped wherever I was needed.

What I didn't realize at the time was that the internship would launch a lifelong career in aviation.

I spent more than 30 years with the Chicago Department of Aviation, working at both Midway and O'Hare. Eventually, I returned to Midway and served as airport director for 22 years. During that time, we invested more than $2 billion in airport infrastructure projects and oversaw major growth, including Southwest Airlines' expansion into what became one of the largest stations in its network.

It was an incredible experience because it combined infrastructure development, airline partnerships and operational leadership. Those lessons continue to shape how I approach the industry today.

GSW: HiSERV has been successful in Europe for years. How does the North American market compare?

O'Donnell: At its core, the customer need is the same. Airlines, airports and ground handlers want reliable partners who can provide equipment, financial flexibility and operational support.

The biggest difference is how leasing is utilized.

In Europe, leasing is much more common. Roughly half of all GSE assets are leased, and many of those arrangements are full-service leases that include maintenance and support. In North America, leasing penetration is closer to 10 percent, and most leases are what we would consider "dry leases," meaning the equipment is leased without the additional maintenance component.

That creates a significant opportunity. We believe North America will continue to evolve as operators recognize the benefits of leasing and outsourcing certain aspects of fleet management.

GSW: Why was now the right time for HiSERV to expand into North America?

O'Donnell: The decision was really driven by customer demand. Many of our customers in Europe wanted access to the same HiSERV capabilities in North America. They wanted a partner with financial strength, operational expertise and flexibility. After building a successful platform in Europe, it was a natural next step.

The strength and resilience of the North American aviation market also played an important role. Aviation has consistently demonstrated its ability to recover from economic challenges, market disruptions and other external pressures. Passenger and cargo activity remain strong, and we see long-term opportunities for growth.

For HiSERV, North America represents a market where we can bring proven solutions to customers who are increasingly looking at new ways to manage their fleets and capital investments.

GSW: Do you expect North American attitudes toward leasing to change over time?

O'Donnell: I do. Historically, ownership has been the dominant model, but we're seeing a shift. Airlines and ground handlers are taking a closer look at how they deploy capital and where they can gain efficiencies.

One of HiSERV's strengths is that we don't offer a one-size-fits-all solution. Every customer has different priorities. Some need short-term rentals during peak seasons. Others may want to monetize existing fleets through sale-leaseback arrangements. Some are interested in full-service leasing programs that include maintenance and operational support.

Our job is to understand those challenges and develop solutions that fit.

As the industry continues to evolve, customers are becoming more open to alternative approaches that allow them to focus on their core business while relying on specialized partners for fleet management and support.

GSW: We recently covered several stories about GSE pooling. What role does leasing play in those types of programs?

O'Donnell: Pooling is a great example of where leasing can support broader airport objectives.

The concept is much more common in Europe, but we're starting to see momentum in North America as well. The developments at New York's JFK Airport are certainly attracting attention throughout the industry.

From an airport perspective, pooling can help achieve a number of strategic goals. It can support sustainability initiatives, reduce congestion on the ramp and improve equipment utilization. It can also enhance safety through technologies such as telematics and geofencing.

Leasing often serves as the mechanism that makes pooling possible because it provides flexibility and centralized fleet management. It's a model that can help airports, airlines and ground handlers work together more efficiently.

GSW: Electrification remains one of the industry's biggest topics. What are you hearing from customers?

O'Donnell: The biggest challenge continues to be infrastructure.

That's true not only for aviation but across transportation sectors. The electrical capacity needed to support large-scale electrification requires significant investment, and that can be difficult at many airports.

However, we are seeing progress. Airports that are undergoing terminal redevelopment projects have a unique opportunity to incorporate electrical infrastructure as part of those investments. That makes future electrification much easier.

In locations where infrastructure is still limited, we're also seeing creative solutions emerge. Mobile charging systems, for example, can help bridge the gap while permanent infrastructure is developed.

I think the industry will continue moving toward greater electrification, but the transition will vary by airport. The right solution at a major hub may look very different from the right solution at a smaller commercial airport. Ultimately, there will likely be a balance between electric and traditional equipment for some time.

GSW: HiSERV places a strong emphasis on fleet data and technology. Why is that becoming so important?

O'Donnell: I often say that data is the queen of the ramp because organizations that effectively collect and utilize data will be best positioned for success.

Through solutions such as Smart Fleet and Smart Tracking, we help customers understand how equipment is being utilized, identify opportunities for optimization and make better operational decisions. When combined with industry expertise, that information can help build the right fleet, improve reliability and reduce unnecessary costs.

Technology is becoming essential to modern ramp operations, and data-driven decision-making will only become more important in the years ahead.

GSW: What has the launch process looked like on the ground in North America?

O'Donnell: It starts with people. One of the advantages we have is the experience and reputation we've built over the past decade in Europe. We've also assembled an outstanding North American team.

Matt Weitzel joined as vice president of sales, and David Farias serves as director of sales. Both are respected industry veterans with extensive experience in the GSE market.

Our focus has been meeting with customers, understanding their challenges and developing solutions. For one customer, that might mean support for electrification. For another, it could involve seasonal rental demand or fleet modernization. Every operation is different, and our goal is to help solve those challenges.

The first few months have been extremely encouraging, and we're excited about the opportunities ahead.

GSW: Looking further into the future, what do you think the ramp will look like five to 10 years from now?

O'Donnell: Aviation has always been focused on continuous improvement, and I don't see that changing.

Technology will play an increasingly important role. That includes telemetry, data collection and, eventually, autonomous equipment. We've only begun to scratch the surface of what's possible with autonomy on the ramp.

The industry's objective remains the same: move aircraft, passengers and cargo as safely and efficiently as possible. The tools we use to achieve that goal will continue to evolve, but reliability, efficiency and safety will remain at the center of everything we do.

GSW: Any final thoughts for the industry?

O'Donnell: HiSERV brings extensive experience to North America. Across Europe, we have more than 15,000 assets deployed at over 50 airports in 13 countries.

We're bringing that expertise, knowledge and operational experience to the United States and Canada, and we're looking forward to building partnerships throughout the region.

There is tremendous opportunity ahead, and we're excited to be part of the industry's future.