Air New Zealand is planning to invest $3.5 bn in new aircraft and retrofitting of its existing fleet over the next five years as a part of its plan to fly 4.5 million seats on 39 international routes, between March and October 2023.
The investment includes purchase of eight new 787-9 Dreamliners and five Airbus A320neo aircraft to add more seats on the Tasman and Pacific Island services. This includes the interior refurbishment of its 14 Boeing 787 aircraft, including the airline's new Business Premier Luxe and refreshed cabins. Work is expected to start next year.
The airline is also in final negotiations to secure another Boeing 777-300ER, which could add 3,000 more seats per week to the airline's international network bringing its total 777-300 fleet to eight.
"We're proud to be making this investment in our fleet and in the future of air travel. Investing in new and retrofitted aircraft will help us attract even more premium leisure customers from the Pacific Rim to New Zealand, boosting the growth of our tourism industry,” commented Greg Foran, CEO, Air New Zealand. "It's a significant investment, reflecting our commitment to delivering the best flying experience for our customers in the short and long term."
Air New Zealand also recorded steady booking across its international network with 91% recovery. The airline is close to pre-pandemic levels on its North America network with more seats from Houston, San Francisco, and Vancouver.
Later this year, the airline's alliance partner, United Airlines, will launch new routes from San Francisco-Christchurch and Los Angeles-Auckland, further growing North America capacity.
Air New Zealand's capacity on its Asia network is at 117% of pre-Covid levels, with Singapore remaining a key hub, particularly for connecting to India and Europe. Demand out of China is slowly rebuilding, and the airline's alliance partner, Air China, has restarted its Beijing-Auckland route. Capacity on Air New Zealand's Tasman and Pacific Island network is also nearing pre-Covid levels.
The airline's domestic network is back to pre-Covid levels. Air New Zealand has added 5,000 seats a week to Christchurch, and added 6,000 seats on regional flights out of Auckland and to main centres.
To support its commitment to New Zealand tourism, Air New Zealand is investing $30 million in marketing campaigns this financial year in key markets to target high-quality visitors.
"Our significant capacity increases across our international and domestic network, coupled with our marketing investment, will help to showcase New Zealand to the world and attract more quality visitors to our shores," Foran concluded.