Doric Lease intends on using the typical aircraft depreciation model to support its memorandum of understanding for 20 Airbus A380 aircraft.
"In our modeling, we plan on using standard lessor depreciation, which is 25 years to 15%," said Mark Lapidus, chief executive officer of Doric Lease at the Ascend Finance Forum in San Francisco. "I certainly expect the early aircraft to have very long leases of life."
According to Lapidus, Doric Lease is a "different kind of lessor" than what is typical in the aviation market. "We are not going to keep trading these planes, so once we place the aircraft with the first customer, we hope to have that customer extend the leases for a significant period of time," he says. "Most of the A380s will run longer than their initial leases."
He anticipates Doric Lease's focus in the secondary market would be on the "large guys".
"Maintenance costs for an older A380 may be more reasonable than for other older planes, attracting large network carriers."
He believes charter carriers are another option and while placements with low-cost carriers are "possible", it is not activity Doric Lease expects in the secondary market.
Doric Lease's long-term plan is to convert the aircraft into freighters, he says.
"The A380 will make a very competent volumetric freighter," he says. "It wont be able to carry tanks like the 747-400, but will have the ability to carry iPads and packages."
The Dublin-based lessor, which launched on 14 June days before signing a memorandum of understanding with Airbus for 20 A380s at the 2013 Paris air show, previously indicated it would sign the 20-aircraft order before the end of the year.