Air New Zealand flags long-haul jet order as competition abates

Singapore

AIR New Zealand is planning a new order for long-haul Airbus SE or Boeing Co aircraft to enable it to fly directly from its Auckland hub to the east coasts of North and South America, its chief executive said.

The plans come as the airline cautiously flagged improving earnings and lifted its dividend after a 21 per cent drop in core annual profit, noting that fierce competition has begun to abate as rivals reduce capacity to New Zealand.

The new A350 or 777X aircraft would at a minimum replace eight 777-200s but could include additional planes to allow Air New Zealand to add direct flights to destinations like New York and Brazil - offeri…