Vueling to split financing on Neo order

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Spanish low-cost carrier Vueling will be looking at sale and leaseback deals, as well as balance sheet financin,g for its Airbus A320neo fleet order, according to its chief executive officer Alex Cruz.

Parent company IAG placed orders and options for up to 220 A320-family jets in August this year in a deal that will see Vueling take 30 firm A320s plus 32 re-engined A320neo aircraft, as well as 58 options.

Cruz told delegates at the International Society of Transport Aircraft Trading in Barcelona that sale and leasebacks will be a “significant portion” of its A320neo order.

But he also says the low-cost carrier will enter a “new chapter” by taking aircraft into its balance sheet.

According to him, Vueling will be one of the first customers for the Neo as it takes first delivery of the aircraft in 2016.

Vueling, which currently operates70- A320-family jets, will start taking delivery of its A320s from 2015.