Air NZ signs deal to replace Nelson fleet

1.00pm

Air New Zealand subsidiary Air Nelson's ageing fleet of 17 aircraft will be replaced in a $350 million deal resulting in new jobs and additional seating capacity, general manager John Hambleton says.

Air NZ announced a new aircraft purchase for Air Nelson signed today with Canadian company Bombardier Aerospace in which it will acquire 17 new 50-seat Q300 turbo-prop aircraft.

The new aircraft will replace Air Nelson's current fleet of 17 33-seat Saab 340A aircraft which have an average age of 17 years.

They will be maintained at Air Nelson's engineering base at Nelson Airport where maintenance work on the Saab fleet has previously been carried out.

The $350 million purchase will be funded via debt.

The first aircraft will be delivered in July next year, with one joining the fleet every six weeks until the delivery process is completed within two years.

Mr Hambleton said the move would see Air Nelson's seating capacity grow by about 60 per cent during the next three to five years.

About 30 extra pilots and flight attendants would be employed by the company nationwide during the introductory phase and more would be hired as passenger numbers grew, he said.

The aircraft selection was the culmination of a fleet review and had involved the assessment of several aircraft types as potential replacement options, including jets.

Mr Hambleton said the Saab 340A had been an "excellent workhorse" but was no longer the best travel experience for Air Nelson customers.

"We firmly believe the Q300 is the right choice due to its superior performance and additional passenger comforts, and I am sure our customers travelling to and from Nelson will enjoy the difference."

Four Saabs are assigned to Nelson routes and Mr Hambleton expected that pattern to continue with the new aircraft.

Seven Saabs were leased and would be returned to their overseas owners while the other 10 owned by Air New Zealand would be sold, he said.

Air New Zealand managing director and chief executive Ralph Norris said the new aircraft type was a welcome boost for regions served by Air Nelson.

"The additional seating will allow us to provide an overall increase in passenger capacity to meet customer demand and less restricted payload on these regional routes.

"In addition, the new technology of the Q300 will ensure increased operational efficiencies and offers us a robust long-term solution for the Air Nelson fleet."

- NZPA