by Darrell Wysong

The balance sheet is constantly under the microscope. Cost-effective solutions are more acute and companies are continually evaluating cost saving measures that will have the impact needed to the bottom line. The need to evaluate the best options when it comes to Ground Support Equipment (GSE) has become more heightened for the aviation industry during the struggling economy.

The question companies have to ask themselves when it comes to GSE is should they lease, refurbish, or buy? The number one factor when determining GSE requirements is reliability. The aviation industry is a time conscience environment. It is important to determine what your operational needs are when you are making decisions about GSE.

Lease

Leasing is a popular option, especially for seasonal equipment or replacements while equipment is getting fixed. Leasing GSE equipment has gained momentum during the economic recession. Leasing equipment is a great way to update or change your fleet quickly to meet your changing operational needs.

Refurbish

The most unpredictable part of GSE is the maintenance part. When equipment ages and is used regularly, everyday maintenance may not be enough to keep your operation running smoothly and without delays. Rather than purchasing new, refurbishing old equipment to zero-time has seen an upward trend over the last decade. The return on investment is achieved quicker versus purchasing new equipment.

Buy

Due to economic uncertainty, companies are shying away from purchasing costly equipment. Companies are identifying opportunities to invest available cash in other areas of potential growth rather than tying it up in equipment. In the current financial climate, this option is less likely. However, organizations need to evaluate the life cycle of its equipment to determine if it is time to buy new equipment to update its fleet to match changing industry standards.

Whatever option you decide, be sure that you evaluate all possible scenarios. Work closely with your operations team to ensure you have a clear understanding of their needs and requirements to run a safe and efficient operation.