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Air New Zealand Selects Boeing to Order Jumbo Jets: Sources

FILE PHOTO: The Air New Zealand logo will be displayed on June 20, 2017 in its office at Sydney International Airport, Australia. REUTERS / DAVID GRAY

PARIS (Reuters) ̵

1; Boeing Co has won a fierce battle to compete for the sale of widebody aircraft at Air New Zealand Ltd, a challenge from Europe's Airbus, industry insiders said Monday.

The airline, which currently operates only Boeing long-range jets and shorter-range Airbus single-aisle jets, has considered the purchase of new jets to replace eight Boeing 777-200ER aircraft.

Air New Zealand, Boeing and Airbus did not immediately respond to a request for comment.

The airline has announced plans to test the Airbus A350 and the Boeing 777X or 787 to launch longer routes such as Auckland-New York and Auckland-Brazil.

Air New Zealand Financial Director Jeff McDowall said in an analyst briefing in March that a decision to purchase aircraft should be taken in the next few months, but the airline expects fewer replacement jets due to the network than originally planned for 2023 need changes.

The airline launched a two-year cost-cutting program in March and raised $ 750 million ($ 490.1 million) of aircraft investments as part of a business review.

In February, domestic tariffs were cut by as much as 50 percent to improve pricing in response to the declining travel market.

Reporting by Tim Hepher in PARIS; additional coverage by Praveen Menon in WELLINGTON; Editing by Stephen Coates

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