Engineering wins big for Air NZ

By DANIEL RIORDAN Aviation writer

Air New Zealand's engineering division has won a $180 million contract to service the gas turbines of one of the world's biggest natural gas companies.

Texas-based El Paso Corporation, listed on the New York Stock Exchange and valued at $116 billion, will send 50 aero-derivative gas turbines to Auckland over the next six years for servicing at the Ansett Australia & Air New Zealand Engineering Services (ANNZES) unit.

Aero-derivative gas turbines typically operate 24 hours a day, generating enough power to light up a small city.

The airline won the maintenance contract ahead of rivals, who are understood to also include the manufacturer, General Electric.

ANNZES has been servicing these kinds of turbines (LM2500 and LM5000) for other customers for several years, alongside other work it carries out in the industrial, marine and aircraft industries.

The engineering unit is also seeking certification to service bigger and more valuable LM6000 turbines.

One industry source said the airline's board was considering building a $22 million test site for the LM6000s at the Otahuhu power station, but an Air NZ spokesman declined to discuss details, other than confirming work to obtain certification was under way.