Air New Zealand to replace Boeings with Airbus A320s

WELLINGTON Nov 3 (Reuters) - National carrier Air New Zealand will buy 14 new Airbus (EAD.PA) planes at a cost of around US$1 billion to replace its domestic fleet of Boeings (BA.N), the airline said on Tuesday.

Air New Zealand said it would buy 14 Airbus A320s to replace it current fleet of 15 Boeing 737-300.

The A320s would begin arriving in January 2011 and be delivered progressively until 2016 to coincide with the expiry of the 737-300 leases, Air New Zealand said.

Shares in Air NZ, which is around 76 percent owned by the government, last traded down a cent or 0.8 percent at NZ$1.27. So far this year the stock has gained around 38 percent compared with a 17 percent rise in the benchmark NZSX-50 index .NZ50. ($1=NZ$1.40)