Doric Aircraft Fund 6 | Fully Syndicated

Asset
The Airbus A380-800 is the world’s largest state-of-the-art passenger aircraft. It is the first aircraft ever to have two full passenger decks, enabling it to carry up to 853 passengers. The aircraft has a range of 15,200 kilometres, roughly equivalent to the distance from Dubai to Sydney. With its combination of modern Airbus body and the newly developed Engine-Alliance jets, the Airbus A380-800 is the most fuel-efficient and quietest aircraft of its class. The airlines operating the Airbus A380 all highlight the aircraft’s reliability. Since the first Airbus A380 went into operation in 2007, the aircraft has enjoyed ever-increasing popularity with passengers. Hence, the Airbus A380 generally flies with a very high passenger load factor. The plane was delivered on December 22nd, 2009 and entered into service with Emirates.

Employment
The aircraft is long-term leased to Emirates. The initial lease tenor is for ten years with an option to extend for a further two years, followed by a further option for six years. Should Emirates choose not to extend the lease for at least two years, then the airline must pay compensation. All operating costs, including insurance and maintenance costs, are borne by Emirates.

Lessee
Emirates is one of the world’s most successful and financially strong airlines. In the past two decades the airline has proven that it is far better able to adapt to a changing market than many of its competitors. Emirates closed the business year 2009/2010 with a profit for the twenty second year in a row.

Emirates is synonymous with service, customer satisfaction and reliability. This applies not only to the Western world but also to the increasingly important emerging markets and developing nations. More than 300 awards and distinctions confirm Emirates’ success and status as a world-renowned airline.

Debt Financing
Around 56.5% of the purchase price of the aircraft and transaction cost has been financed by a long-term loan from Norddeutsche Landesbank Girozentrale and Landesbank Hessen-Thüringen Girozentrale. Interest has been fixed for twelve years with majority of the loan being amortized over that period.

Economics
Total distributions of 250% (including repayment of capital) have been projected until the end of the investment period in 2027. Should the aircraft be under lease after this time, total distributions – resulting from additional lease rents with no further debt payments - will increase accordingly.

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