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Air NZ spends billions on new fleet of Boeing 787-10 Dreamliner aircrafts

ASX News, Consumer Discretionary, Finance
ASX:AIZ      MCAP $1.667B
26 May 2019 21:46 (AEST)

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Air New Zealand has just announced it will invest a value of US$2.7 billion into purchasing eight new 787-10 Dreamliner from Boeing, a multinational aerospace company. The Boeing 787-10’s will be powered by GE Aviation’s GEnx-1B engines. As airlines usually negotiate discounts, the Company has chosen not to disclose the exact final purchase price.

After stating the current fleet of Dreamliners will be phased out by 2025, Chief Executive Officer, Christopher Luxon said: ” the GEnx-1B engines are expected to be 25 per cent more fuel efficient than the aircraft they’re replacing.”

Air New Zealand currently operates a fleet of 13 787-9 Dreamliners which according to Christoper Luxon is the “perfect aircraft for the airline’s Pacific Rim focus.”

The new 787-10 aircraft is longer and more fuel-efficient, holding the potential to save 190,000 tonnes of carbon per year. The Dreamliner also offers almost 15 per cent more space for customers and cargo than the current 787-9’s, making it a much more valuable asset to the Company’s growth strategy.

Vice President of Boeing Commercial Sales and Marketing for the Asia Pacific, Christy Reese said: “We are honoured to extend our deep partnership with Air New Zealand. This is a bold decision by the airline and will help carry forward the ambitions of Air New Zealand for many years to come.”

The agreement includes the option for Air New Zealand to increase the number of aircrafts from eight to up to 20. The first of the Boeing 787-10 aircrafts will join Air New Zealand in 2022 and the remaining aircrafts will be delivered in intervals through to 2027. If the Company notices a difference in market demand whether it is positive or negative, it can choose to accelerate or delay the delivery schedule.

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