The government has revealed the planes chosen to replace the Defence Force's (NZDF) ageing 757s, and a fleet of helicopters to be based on New Zealand's frigates.
Defence Minister Judith Collins and Foreign Minister Winston Peters unveiled the plans to purchase five MH-60R Seahawk helicopters to replace the existing maritime fleet, and two Airbus A321XLR aircraft to replace the 757s.
The helicopters make up the bulk of the total $2.7 billion expense, costing more than $2b, while the planes account for a $620 million capital cost and four-year operating cost of $80.86m under a six-year lease-to-buy agreement.
They would be procured directly through the United States' Foreign Military Sales programme instead of going to a wider tender, with Cabinet to consider the final business case next year.
The more than 44-metre Airbus model is a long-range aircraft and can fly 11 hours or 8700km non-stop, can carry up to 9100kg of cargo and up to 244 passengers - but a standard commercial layout would accommodate half that. It can be crewed by just three people, but the usual standard is seven.
The nearly 20-metre Seahawks require three crew, can reach speeds up to 333kmh and fly up to 963km, and can carry up to 1500kg. They are armed with an Mk54 anti-submarine torpedo, AGM-114 Hellfire air-surface missiles, crew-served machine guns and Advanced Precision Kill Weapon Systems.
The decision was made in Cabinet this week.
Chief of Defence Force Air Marshal Tony Davies said the Airbus had "far more significant range" than the 757s and with a typical troop and cargo load would be able to travel about 5000 miles (8000km) - about 30 percent further than the typical Airbus 320 that flies commercially around New Zealand.
He said the purchase of the Seahawks was a government-to-government arrangement previously used to buy the C-130J Hercules aircraft, the P-8 Orions, and the simulator that arrived in Auckland on Wednesday.
"We as a government negotiate with the US government about what we want and when we want it, then the United States government negotiates with Lockheed Martin on our behalf to get the best price... the US has more weight, more bulk and more demand so they can drive the unit price down."
Collins said that range was about equivalent to flying Auckland to Singapore.
Collins said they would "ensure New Zealand has a critical combat capable, interoperable and dependable fleet", with the Seahawks being versatile and adding combat and deterrent capability.
"The MH-60R Seahawk is a great aircraft for what New Zealand needs and fulfils our objective of having a more integrated Anzac force, and the new planes will give us reliable aircraft to deploy personnel and respond to international events," she said.
"The decision to acquire the extra long range aircraft reflects the importance of having an aircraft capable of such things as returning safely from Antarctica if it is unable to land due to conditions on the ice."
Collins said the 757s had been giving incredible service, backed by incredible maintenance, "but there comes a time when even the most amazing classic aircraft needs to be allowed to go to aircraft heaven".
She said the plan would equip the NZDF to be increasingly combat capable and interoperable with partners, "able to act as a force multiplier with Australia".
The Seahawks were "by far the best option", were already used by Australia, the United States and seven other countries, and would increase "lethality and defensive capability" of the Navy, she said.
"In a world where tensions are rising, distance no longer provides New Zealand the protection it once did, and defence is not something that can be mothballed until you need it."
It would take a few years because it was a purchase of brand new equipment "and we have to go in an order", she said.
She rejected the suggestion replacing seven Seasprite helicopters with five Seahawks would mean a reduction in capability because the current fleet were so old they were only able to operate 23 to 25 percent of the time.
"You're dealing with very, very old aircraft... used in the Korean war," she said.
The planes would need to be refitted for military use after they arrived in 2028, she said.
Peters said it showed the government was responding to a "sharply deteriorating security environment".
Peters said the Seahawks would "increase our frigates' surveillance range and support NZDF's humanitarian assistance and disaster relief capability so we're able to respond quickly to an emergency in New Zealand or the Pacific".
The Airbuses would also support the ability to provide rapid emergency support - including in places where commercial aircraft were unable to operate.
Defence Capability Plan
The purchases are the first that were forecast in the Defence Capability Plan unveiled in April, setting out an expected $12b in spending on defence assets over four years, $9b of that being new money.
The plan overall lifts New Zealand's defence spending to more than 2 percent of GDP over the next eight years.
The NZDF'ss 757s were purchased second-hand in 2003 and are now about 33 years old, mostly used for transporting troops and cargo but also for diplomatic trips overseas.
Prime Minister Christopher Luxon was highly critical in opposition of the planes' reliability and pledged to fly commercially if elected.
He also said at the time it would be inappropriate to spend money on upgrades, but changed his mind on both counts after becoming prime minister.
He - like several previous prime ministers before him - suffered breakdowns in trips to Asia and Australia.
