Air New Zealand signs deal for 15 new Airbus planes

4.00pm

Air New Zealand has today signed a deal with Airbus for 15 new A320 aircraft and purchase rights on a further 20 within the next 10 years.

"The Airbus aircraft will give us new capabilities for our short-haul international operations in terms of range, passenger and cargo carrying capacity, set and cabin configurations, and in-flight services," the managing director and CEO of the group Ralph Norris said.

"We currently use a mix of Boeing 767 and 737 type aircraft on our short-haul international services and consolidation on a single type aircraft will simplify both operation and support service requirements," he said.

At this stage they envisaged continuing to use Boeing aircraft for domestic and long-haul international services.

Ten of the 15 A320's and other associated items were being acquired via a combination of purchase and leasing arrangements still to be finally determined by the Air New Zealand board.

It would fall within a capital investment budget in excess of US$400 million.

The first of the new aircraft would be put into the Air New Zealand fleet at the end of October next year, and the 15th aircraft was scheduled to be delivered towards the end of 2006.

They would replace four Boeing 767-200 aircraft that are currently being retired from the fleet and nine Boeing 737-300 that would be retired before the end of 2006