Air New Zealand chooses Boeing over Airbus as it orders new Dreamliners

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Air New Zealand chooses Boeing over Airbus as it orders new Dreamliners

Air New Zealand has ordered eight new Boeing 787-10 aircraft, to replace its aging fleet of Boeing 777-200s and potentially make it possible for the carrier to fly non-stop to New York.

The airline’s chief executive Christopher Luxon said the order was a "hugely important decision” for the carrier, with the first of the jets to arrive in 2022.

The eight new aircraft have a list value of $US2.7 billion ($3.9 billion), but airlines usually negotiate significant discounts and the final price tag is confidential.

The order sees Boeing emerge over victorious over rival plane maker Airbus, which had pitched its A350 to Air New Zealand in a fierce two-year contest for the contract. It is a welcome boost for Boeing, which has seen its market capitalisation drop by around $60 billion in the wake of two tragedies involving its 737 Max planes, which remain grounded worldwide.

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Air New Zealand already has a 13-strong fleet of 787-9 Dreamliners, which are smaller than the 787-10 variant.

Ongoing technical trouble with the Rolls-Royce engines in its existing Dreamliners has forced it to lease two Boeing 777-200s to supplement its fleet while aircraft are grounded for repairs.

The airline has opted for rival engine maker General Electric’s GEnx-1B engine for the new aircraft, which the company said will make them 25 per cent more fuel efficient than the 777-200s they replace.

The 787-10 Dreamliners have about 15 per cent more space for passengers and cargo than the 787-9s, which Mr Luxon said "creates the platform for our future strategic direction and opens up new opportunities to grow”.

"Today’s news is incredibly exciting for our business and our customers as we continue to invest in the most innovative, sustainable and comfortable aircraft on the market,” Mr Luxon said.

Mr Luxon said that Air New Zealand would look at reconfiguring its 787-9 Dreamliners in 2022 to remove weight from those aircraft and allow it to fly further, and reach all the way to New York from Auckland non-stop.

Qantas uses a modified 787-9 to fly non-stop from Perth to London, but is looking at the larger Boeing 777X and Airbus A350 for non-stop flights to London and New York from Australia’s east coast.

The airline had worked with Boeing and GE to ensure the new Dreamliners can complete the same missions as its existing 777-200s.

More to come

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