Addressing the Expenditure Concern Over GSE Usage

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Summary: Ground support equipment demands a hefty price tag due to their size, strength, and versatility.

The ground support industry, similar to that of the aviation industry, runs on a wide array of tight margins. In order to ensure both profitability and success, ground service providers must perform like a well-oiled machine while keeping costs at a minimum. As the aviation industry grows and changes over the years, numerous trends are emerging right under our feet and are impacting the way we see ground support equipment as a whole.
A New Means of Profit vs. Expenditure

With the success of profit margins within the last few years, the aviation industry is requiring a much needed capital expenditure into new equipment and technology – in order to maintain top tier safety and efficiency due to the lack of equipment upgrades, like ground power unit supplies and tools.

Airlines are continuing to generate a significant amount of revenue. To provide the means to approach a successful economic life, airlines need to take on a different approach to expenditures. Remember, operational parameter and technology will change over time. By incorporating a flexible means of providing a fleet replacement strategy, one can mitigate the unpredictability of economic cycles that have continuously plagued the airline industry.

The Leasing Options

Now, several ground support providers are looking to lease equipment rather than purchasing, as a means to decrease the amount of expenses. At Start Pac, we guarantee that our products are designed to withstand the rigors of continuous use and cycling. This provides a financial solution to support their requirements and increase the longevity of their economic plan. It’s a trend that has been developing and has actually become sort of the business model in Europe. The truth is, ground support equipment will typically last 10 to 20 years and hold its value surprisingly well. With such a long lifespan, longer financing terms can be arranged, which means low monthly payments.