Air New Zealand plans to become the second airline to order 7E7s, buying two from the Boeing Co., while also acquiring eight new 777-200ERs.
The deal, announced earlier today, is valued at more than $800 million.
The order is “a clear signal of where Air New Zealand is positioning itself – innovative, efficient and delivering the best products to customers,” the airline said in a statement filed with the New Zealand stock exchange.
A Boeing statement called it “great news for Boeing and for Air New Zealand.”
The order will allow the airline to “change the game in the South Pacific,” Boeing senior vice president Doug Groseclose said in a statement issued in New Zealand.
The deal is not final. Because of its size, Air New Zealand will be required to seek shareholder approval, under New Zealand stock exchange rules.
Boeing spokesman John Kvasnosky said the company expects that will be concluded in a matter of weeks.
The airline said it plans to take delivery of the first 777s in September 2005, with all eight to be delivered by the end of 2006.
The delivery dates on the 7E7s, which won’t be available until 2008, haven’t been set, the airline said.
The airline also secured purchase rights to as many as 42 777s or 7E7s. Purchase rights allow Air NZ to place future orders for planes, should space on the production line become available.
The new planes will be used to start new routes and increase the frequency of flights on existing routes, the airline said. They’ll give the airline increased cargo capacity while cutting operating costs.
The planes will replace Air New Zealand’s fleet of 10 767s. The airline also has eight 747s in its long-haul fleet.
The airline spent 18 months studying whether to buy Boeing or Airbus planes for its long-haul fleet. This “intense and robust evaluation” determined that “on balance, the Boeing aircraft best fits our long-haul and business needs,” Air NZ chief executive Ralph Norris said in a prepared statement.
Last month, Boeing formally launched the 7E7 program with an order of 50 planes from All Nippon Airways of Japan.
Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
