American aerospace company Boeing has been reportedly selected by Air New Zealand for the supply of wide-body aircraft.

Boeing is reported to have won a keenly fought contest with Europe’s Airbus for the contract, industry sources said.

Air New Zealand currently operates Boeing wide-body jets on long-haul routes and Airbus single-aisle jets on shorter routes, and the carrier intends to purchase wide-body jets to replace eight Boeing 777-200ER aircraft.

Air New Zealand had previously said that it is considering the Airbus A350 and the Boeing 777X or 787 models to launch longer routes such as Auckland to New York and Auckland to Brazil.

At a briefing in March, Air New Zealand finance director Jeff McDowall was reported to have told analysts that a decision on the purchase of aircraft is expected to be taken in the next few months, and the airline would require fewer replacement jets than originally expected in 2023 due to network changes.

In March, the New Zealand carrier had launched a two-year cost-reduction programme and postponed aircraft capital expenditure of up to NZD750m ($490.1m) as part of a business review.

Air New Zealand reduced domestic fares by 50% in February in an overhaul of its pricing structure due to the slackening travel market.

How much of an impact will the COVID-19 outbreak have on the revenue of aerospace companies?

View Results

Loading ... Loading ...

In May, Air New Zealand opened a new check-in area at Tauranga Airport, which has increased the space threefold.

The airport revamped its front-of-house space at the airport, which now features six new self-service check-in kiosks, in addition to three self-service bag drops, a premium check-in area, and a new counter for customers travelling with oversize luggage.

“The airline would require fewer replacement jets than originally expected in 2023 due to network changes.”

A new dedicated Air New Zealand cargo office has also been established at the airport.

As part of the Tauranga Airport redevelopment programme, new space for the regional lounge has been opened in December 2018, doubling the seating capacity to 90.

The lounge offers various facilities such as a café, a buffet offering light refreshments, a self-service drinks station, and a mix of business, lounge and quiet seating areas.