Air NZ’s multi-million aircraft investment
Air New Zealand may spend up to $US270 million on new aircraft between now and 2016.
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Air New Zealand (NZX: AIR) may spend up to $US270 million on new aircraft between now and 2016.
The airline has ordered seven new-generation ATR72-600 aircraft, with purchase options for a further five. In total, the aircraft are worth approximately $US270 million.
Chief executive Rob Fyfe says the new aircraft will add an extra two million seats a year to New Zealand regional flights. The additions will double the size of Air New Zealand’s current ATR fleet.
The first of the 68 seat ATR72-600 aircraft will be delivered to Air New Zealand in October next year followed by a second in December 2012, two in 2013 and another each year for three years. The five purchase options are available for delivery between 2014 and 2016.
This follows Air New Zealand’s investment in 23 Q300 aircraft over the past six years, worth more than $NZ450 million at list price, and the purchase from lease of the majority of the existing ATR72-500 fleet over the past 18 months.
“At a time when other businesses have shown little appetite to invest significantly in assets, particularly where revenue is derived from regional New Zealand, we have not wavered in our belief in the long-term strength of the domestic economy,” says Mr Fyfe.
Mr Fyfe said larger aircraft and lower fares had resulted in a regional passenger number average increase of 5.6% annually since 2003.
The new-generation ATR72-600 is the most efficient aircraft in its class and features a new cabin layout with larger overhead bins, improved seating and advanced cockpit technology including Required Navigation Performance (RNP) technology.
Air New Zealand Group Australasia Airline general manager Bruce Parton said the new fleet was likely to be will be Auckland-based. “This will give us a solid platform for regional growth particularly into and out of Auckland.”
Charlotte Woodfield
Wed, 19 Oct 2011
Wed, 19 Oct 2011
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Air NZ’s multi-million aircraft investment
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