NZ Air Transport Sector: Air NZ chooses Airbus for domestic service
November 5th, 2009
Air NZ will replace its domestic fleet of Boeing 737s with Airbus A320s, taking advantage of the downturn in the global aviation industry to negotiate a favourable price. The national carrier will take delivery of 14 A320s in early 2011 and progressively phase out its iconic 737-300s by 2016. The decision to go with Airbus follows eight months of evaluation.
Air NZ group general manager short haul airline Bruce Parton says the value of the purchase is at a discount to the $US1bn list price. The airline has rights to buy a further 11 aircraft. Parton says “the industry is at the bottom of a deep cycle so demand for aircraft is limited, creating favourable conditions for buyers with strong balance sheets like Air NZ.” The new planes will also provide work for Air NZ’s Pratt and Whitney Christchurch Engine Centre joint venture, which will gain the servicing contract for the IAE V2500 engines. The A320s will also allow Air NZ to bolster capacity on some routes starting to hit constraints, as they’re likely to be configured with about 171 seats versus the 737′s 133-seat configuration.
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