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Air New Zealand is acquiring 15 new Airbus A320 aircraft and purchase rights
on a further 20 A320 aircraft, exercisable over the next 10 years, under an
agreement signed with Airbus today.
"We are bringing in a new aircraft type to support a strategic change in the
service and products we will be offering to short-haul international
travellers on Air New Zealand's Tasman and South Pacific routes," the
Managing Director and CEO of the Group Ralph Norris said in announcing the
A320 acquisition deal.
"The Airbus aircraft will give us new capabilities for our short-haul
international operations in terms of range, passenger and cargo carrying
capacity, seat and cabin configurations, and in-flight services.
"We currently use a mix of Boeing 767 and 737 type aircraft on our
short-haul international services and consolidation on a single type
aircraft will simplify both operation and support service requirements.
"Introducing Airbus A320 aircraft to our fleet will also expand our
engineering capability and enable our ANZES engineering unit to increase its
range of third party contract services.
"At this time, we envisage continuing to use Boeing aircraft for Air New
Zealand domestic and long-haul international services," Mr Norris said.
Ten of the 15 A320 aircraft, a simulator, spares and other associated items
are being acquired via a combination of purchase and leasing arrangements
still to be finally determined by the Board of Air New Zealand within a
capital investment budget in excess of US$400 million. Five of the aircraft
will be acquired from the leasing company GECAS under a standard operating
lease arrangements.
The first of the new A320 aircraft will be inducted into the Air New Zealand
fleet at the end of October next year, and the 15th aircraft is scheduled to
be delivered towards the end of 2006.
The deal was announced at a signing ceremony in Auckland attended by Air New Zealand Chairman John Palmer, Managing Director and CEO Ralph Norris and Airbus Executive Vice President Customer Affairs and Chief Commercial Officer John Leahy.
Air New Zealand will begin receiving the aircraft - acquired through a mix of leases and purchases - in October 2003. It will use the the initial Airbus A320s on flights between New Zealand and Australia, as well on Pacific island services.
Air New Zealand has yet to select engines to power the aircraft.
''After a thorough evaluation, the A320 family emerged as the best solution for our needs - it has the most comfortable cabin, the best economics and the best cargo capability - as well as being the most modern aircraft in its class, '' says Ralph Norris. ''The more spacious cabin of the A320 family aircraft will provide us with more flexibility to meet the needs of our passengers, while its superior economics will translate into a larger positive contribution to our financial performance, '' he adds.
The best-selling Airbus A320 family comprises the A318, A319, A320 and A321, which share the same
airframe, cockpit and handling qualities. They are in widespread airline service around the world, and consistently lead in independent passenger surveys. The A320 has excellent range capability, and is already certificated for 120 min ETOPS flights.
''We are very pleased to welcome Air New Zealand as the 110th customer for the increasingly popular A320 family, which continues to win widespread acclaim as the most efficient and environmentally friendly aircraft in its class,'' says John Leahy.
''As one of the world's oldest and most respected airlines, Air New Zealand is renowned for its high level of passenger comfort, service and reliability, and we are delighted that it has chosen our A320 family to introduce new standards on its regional international services,'' adds Airbus Chief Executive Officer Noël
Forgeard.
These aircraft will replace four Boeing 767-200 aircraft that are currently
being retired from the Air New Zealand fleet and nine Boeing 737-300
aircraft that will be progressively retired from the fleet between September
2003 and December 2006.
The purchase of the new aircraft will have a net positive impact on Air New
Zealand's financial performance as the enhanced operating efficiency of the
new aircraft, and increased seat numbers, more than offset the cost of
incremental capital employed in the new fleet.
Financing for the acquisition will be secured against the aircraft and is
not expected to affect the Group's gearing levels. The acquisition can be
financed without any recourse to the shareholders.
The A320 is well suited to Air New Zealand's needs in the Tasman and
short-haul Pacific markets, with more seating capacity than the Group's
existing fleet of Boeing 737 and 767 type aircraft. The A320 is capable of
carrying containerised cargo and has a greater range than the 737-300 making
it a better fit for the missions required by the regional market.
Under the terms of its agreement with Airbus, Air New Zealand has the right
to switch between the A320 aircraft and either the larger A321 aircraft or
the smaller A319 aircraft prior to delivery, should market conditions
change. If this right is exercised, financial terms would be adjusted
accordingly.
In addition to its commitment to acquire the 15 aircraft, Air New Zealand
has secured purchase rights on a further 20 Airbus aircraft at agreed prices
in the future. These rights lock in prices based on current market
conditions for future acquisitions by Air New Zealand without any fixed
obligation to purchase. These arrangements provide the Group with the
ability to replace its entire Tasman and short-haul Pacific fleet within the
next decade. |
