Doric's move to an Airbus A380 operating lessor allows the financier to reap "benefits" not afforded to it as an asset manager.
"In many respects, it is an enhancement of what we have been doing...but this gives us benefits we didn't have access to before," said Paul Kent, chief commercial officer of Doric, at the Ascend Finance Forum in London today.
"There are things I can do in this arrangement that I couldn't do in a sale and leaseback," he explains. "There are certain risks I can invite the manufacturer to be part of, for example, that I couldn't achieve in a sale and leaseback agreement where the purchase agreement has been done with the airline before I even get to the table."
As an operating lessor, Kent says Doric can commit "less equity to a larger greater portfolio of planes".
"So I actually mitigate my residual value risk exposure to the aircraft by moving to this type of structure relative to the way we were trying to do it before," he says.
Another perk is greater bargaining power. "I think Airbus would even agree this is a pretty good deal," he says. "It might even say it is too good of a deal."
Kent acknowledges certain delegates at the forum may be sceptical about Doric Lease, but he believes this sentiment also creates opportunities.
"I am happy some of you are uncertain because the longer you are uncertain, the longer you will stay out of this space and the longer I have a nice niche to exploit," he says.
"We thought about this move very carefully," he adds.