The firm commitment for eight GE GEnx-1B-powered 787-10s, announced May 26, is valued at $2.7 billion at list prices. Air New Zealand said the carrier “negotiated a significant discount on current list prices.”

Air New Zealand has 14 787-9s in its fleet; deliveries of the larger -10 will start in 2022.

“The 787-10 is longer and even more fuel efficient. However, the game changer for us has been that by working closely with Boeing, we've ensured the 787-10 will meet our network needs, including the ability to fly missions similar to our current 777-200 fleet,” Air New Zealand CEO Christopher Luxon said.

“This is a hugely important decision for our airline. With the 787-10 offering almost 15% more space for customers and cargo than the 787-9, this investment creates the platform for our future strategic direction and opens up new opportunities to grow.”

The deal includes options for up to 12 more -10s and the airline has also negotiated substitution rights that allow a switch from the -10s to -9s, or a combination of the two models for future fleet and network flexibility. The delivery schedule can also be delayed or accelerated according to market demand.

The -10s will replace eight Boeing 777-200s aircraft that are scheduled to be phased out by 2025; the airline says the -10s will be 25% more fuel efficient.

Air New Zealand is the 2019 ATW Eco-Airline of the Year.

Karen Walker karen.walker@informa.com