Queenstown is set to benefit from a major upgrade Air New Zealand is making to its regional fleet.
The national carrier announced today it was spending up to $340 million on 12 new ATR72-600 aircraft, which feature navigation technology that will allow it to better maintain services to regional destinations including Queenstown.
The company said it would buy seven new planes, with an option for an additional five.
It already owns 11 ATR72-500s.
Air NZ chief executive Rob Fyfe said the new planes would significantly boost air service connections to regional New Zealand.
"This order potentially doubles the size of Air New Zealand's ATR fleet and puts a further two million seats into the New Zealand regional market annually," he said.
The first of the 68-seat ATR72-600s will be delivered to Air NZ in October next year, followed by a second in December that year, two in 2013 and another each year for three years.
The five purchase options are available for delivery between 2014 and 2016.
ATR is a French-Italian aircraft manufacturer.
Air NZ said the ATR72-600 is the most efficient aircraft in its class and features a new cabin layout with larger overhead bins, improved seating and advanced cockpit technology, including Required Navigation Performance (RNP) technology.
It said RNP would enhance Air NZ's ability to maintain services during bad weather to and from destinations like Queenstown, Rotorua and Wellington.
The current ATR 72-500 - which sits alongside the company's 23 Q300s and 18 Beech 1900Ds - has been a core part of Air NZ's regional operations since 1999.
The new fleet will probably be Auckland-based.
Air NZ shares last traded at $1.06, up 1c.
- Jamie Gray, APNZ business reporter
