Airline Air New Zealand Ltd
(ASX:AIZ) has announced that it will replace its current domestic fleet of fifteen Boeing 737-300s with fourteen of the A320 Airbus carriers.
As part of the agreement the airline has also secured the purchase rights for a further 11 aircraft.
Group General Manager Bruce Paton says that the first fleet will arrive in January 2011 and will be progressively introduced through until 2016, coinciding with the expiry of the 737 aircraft leases.
The company says at list prices, the cost of the 14 aircraft is in excess of US$1 billion however it says it has secured the aircraft at a discount that reflects the current market conditions.
Air New Zealand’s 2009 net profit was way below its 2008 result of NZ$218 million.
