Air NZ to acquire Airbus A320, A321neos in cash transactions

Air New Zealand has announced it will deploy excess cash to pay for future deliveries of its Airbus A320 and A321neos to provide additional capacity on its domestic network, the company said.

The carrier said it is targeting to reduce its cash balance from around NZ 1.3 billion (USD 915 million) to between NZ 800 million and NZ 1 billion. The primary way to do that is to pay cash for the aircraft.

This will give the airline a larger base of unencumbered assets that could be used to raise financing if it were required in future.

That will see its capital expenditure over the next three years grow from NZ 350 million to NZ 450 million, including pre-delivery payments on a widebody order expected next year to replace its eight Boeing 777-200ERs.

Flight Fleets Analyzer shows that the carrier will take delivery of three A320neos and one A321neo from Air Lease between December 2018 and April 2019.

Air NZ is the flag carrier airline of New Zealand. Based in Auckland, the airline operates scheduled passenger flights to 20 domestic and 31 international destinations in 19 countries around the Pacific Rim and the United Kingdom.