Avolon to lease 15 planes to Indian airline Vistara

Irish aircraft lessor has also cleared $407 million in bonds owed to investors

The A320 is a narrow-body, twin-engined craft most frequently used on short- and medium-length journeys. Photograph: Getty Images
The A320 is a narrow-body, twin-engined craft most frequently used on short- and medium-length journeys. Photograph: Getty Images

Irish aircraft financier Avolon is leasing 15 Airbus A320 neos to Indian airline Vistara.

The news came as Avolon also announced that its first securitisation venture, Emerald Aviation Finance, has cleared the outstanding $407 million (€359 million) in bonds that it owed to investors.

The lessor said that repaying the Emerald bonds was part of its ongoing pledge to cut its secured debts.

Avolon announced on Thursday that it is leasing 15 of the latest model of the Airbus A320 to Vistara, a joint venture between Indian steel giant Tata and Singapore Airlines.

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Latest model

This is the first deal that the Irish lessor has done with Vistara, which is a full-service carrier based in India. The A320 is a narrow-body, twin-engined craft most frequently used on short- and medium-length journeys.

The latest model, the neo, carries more passengers and uses less fuel than earlier versions.

Simon J Hanson, Avolon's head of Asia Pacific, predicted that the craft would open possible new routes for Vistara, cut its costs and boost efficiency.