NZ to replace domestic 737 fleet

[David Ramsay]

Air New Zealand announced today that they are replacing their aging 737-300 domestic fleet with A320's.

Air New Zealand to replace domestic Boeing 737-300s with Airbus A320s

Air New Zealand is to acquire 14 new Airbus A320 aircraft, to replace its current domestic jet fleet of 15 Boeing 737-300 aircraft.

As part of the agreement Air New Zealand also has secured purchase rights for a further 11 aircraft.

“Subject to final contract, the first A320 aircraft will arrive in January 2011, with the fleet to be progressively introduced through until 2016 coinciding with the expiry of 737 aircraft leases,” says Air New Zealand Group General Manager Short Haul Airline Bruce Parton.

The aircraft will be powered by an advanced version of the IAE V2500 engines currently fitted on the A320, allowing further fuel burn improvement.

The engines will be serviced at the joint venture Air New Zealand - Pratt and Whitney Christchurch Engine Centre, providing ongoing work for the 400 staff employed there.

At list prices, the cost of the 14 aircraft is in excess of US$1 billion, however Air New Zealand has secured the aircraft at a discount that reflects the current market conditions.

For the past eight months, Air New Zealand has been evaluating options to replace its 737-300s.

“This is a very good time to buy aircraft. The industry is at the bottom of a deep cycle so demand for aircraft is limited, creating favourable conditions for buyers with strong balance sheets like Air New Zealand,” says Mr Parton.

“As we did with the 777, 787 and earlier A320 purchases, we have been able to buy counter-cyclically and again secure an excellent deal for Air New Zealand.

“This is a very exciting time for Air New Zealand when you consider we will be introducing 777-300s, 787-9s and now also A320s into our fleet during the first half of the next decade. It will ensure the airline continues to have one of the youngest fleets in the world, and a world-beating product across the entire jet fleet.”

Mr Parton says Air New Zealand’s existing fleet of 12 A320 aircraft is performing well on the airline’s short haul international network and moving to one single-aisle jet aircraft type across both domestic and short haul networks will deliver efficiencies in fuel burn, maintenance, training, spares holding and fleet management.

“Thanks to its fuel efficiency, the A320 will enable Air New Zealand to increase capacity on the domestic market while reducing carbon emissions,” says Mr Parton.

The larger aircraft will enable Air New Zealand to increase capacity on routes that are beginning to face capacity constraints at some airports during peak times.

The current 737 fleet is configured with 133 seats, with the larger domestic A320 aircraft to likely be configured at around 171 seats.

“While we will have one common single-aisle jet fleet, there will be separate configurations for the domestic and short haul international fleets, reflecting the different needs of customers on those routes,” says Mr Parton.

More than 6,400 Airbus A320 Family aircraft have been sold to more than 300 customers and operators worldwide.

[Torin Wilson]

Wheres the A319s ?!

[Ellis Taylor]

In the end the A319 probably lost out on operating economics. Broadly speaking, they are about 5 per cent more expensive to run on a per-seat basis, and are really only used by carriers where the extra range comes in handy, such as on Air Canada's services across the country.

[Andrew Ewen]

Originally Posted by Ellis Taylor

Broadly speaking, they are about 5 per cent more expensive to run on a per-seat basis.

True , but that only really comes into play if you can fill the A320 rather than the A319 , if you cannot fill an A320 then the A319 probably has a lower trip cost - the question is will NZ be able to consistently fill the A320 - as per the originally quoted article the 733s currently have 133 Y seats while the A320 will have 171 - that is a big jump in capacity , especially if the 3 domestic players become 4 with rumours that Tiger would like to dig their claws into New Zealand as well . If NZ cannot fill that additional capacity then it may be that the A319 would have been a smarter choice , but I guess time will tell .

[Andre H]

171 seats sounds like full economy configuration. So you can´t change the planes from a domestic to route like AKL-SYD.

[Daniel F]

The Air NZ statement said that there would be different configurations for domestic and international flights, so they aren't planning on swapping the A320s between domestic and international routes.

[Mike W]

They must have got some deal and for sure having the existing Skodas would have been a big factor.

Personally, I'm disappointed in the decision but I guess financial considerations overpower everything else including the engineering side. (This is based on discussions I've had with ANZ employees, some of whom work in maintainence and how abysmal the quality of the build is relative to the venerable 73's)

Key take out from Flightglobal article

"Subject to final contract," the A320s arrive between 2011 and 2016 as the leases of ANZ's 737s expire. The carrier says that it secured the A320s at a "discount that reflects the current market conditions."

[Andre H]

@Daniel F
I work for a german airline since 1994 and I know the difference between statements and the reality.
If you have an AOG and have to change the A320 INT to A320 NAT, you will have a lot of fun with the C-Class Passengers, quite rightly. :-) :-)

[Andrew M]

Originally Posted by Mike W

They must have got some deal and for sure having the existing Skodas would have been a big factor.

Personally, I'm disappointed in the decision but I guess financial considerations overpower everything else including the engineering side. (This is based on discussions I've had with ANZ employees, some of whom work in maintainence and how abysmal the quality of the build is relative to the venerable 73's)

Have to agree with you there. From my discussions with QF group staff the A320/A330's are frustrating when compared to the others.

Would have been nice to have B737's operating with the new interiors and lights etc etc.

So many A320's flying around Aus now

[Mike W]

Originally Posted by Andrew

Airbus refused to sell buses to Ryanair at the 'absurd' price Michael was demanding. In the words of Mr Leahy, "Airbus sells premium aeroplanes, our pricing reflects a better quality product"...

So Easyjet's decision to swap from 73's to 319s was because the Airbii was a "better quality product" then? QF and DJ are with the 737 because they are cheaper and extreme LCC's JQ and Tiger with 320s because they are a "better quality product". Mate, Leahy? C'mon.

The 320 offers a number of advantages over the Boeing product that extends beyond the cabin

Yeah and I can name two relating to the purchase price... dollars and cents.