Air NZ announces radical restructure

By Graeme Kennedy

Friday 5th July 2002

Air New Zealand is acquiring a fleet of 15 Airbus A320 jetliners in a deal worth more than $US400 million ($NZ818 million) and taking options on a further 20 in a radical restructure of its short-haul international fleet.

The single-aisle twin-jets will replace Boeing 737s and 767s on the carrier's Tasman and South Pacific routes to consolidate the operations with a single aircraft type to achieve significant cost savings.

The first A320s are scheduled to join the Air New Zealand fleet in October next year and the last one late in 2006.

Five of the aircraft will be leased from US company GECAS and the other 10, a simulator and spares will be acquired through a mix of purchase and leasing agreements.

Air New Zealand chief executive Ralph Norris said yesterday Boeing aircraft including the 737 and 747 would continue to be used on domestic and long-haul international routes.

He said the purchase would have a net positive impact on Air New Zealand's financial performance as their enhanced operating efficiency and increased seat capacity would more than offset the cost of incremental capital in the new fleet.

Mr Norris said the 20 options had been secured at agreed future prices.

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