Air N.Z.’s jumbo decision 'weeks away'

Press, 1 April 1980, Page 2

Air N.Z.’s jumbo decision 'weeks away'

PA Auckland 1 An Air New Zealand ; spokesman said yesterday that it- would be several more weeks before the airline decided whether to buy Boeing 747 jumbo jets or more DC 10 aircraft, . Tne airline’s board still had to decide and then it had to be, approved, by the Government’, he said.-. ...: -; It could -be six weeks or more?: ' : • ■ ■. <. "■.

He denied that the airline I was on the verge of signing, letters of intent to buy the I Boeings. - ' Airline sources in Auck-1 land said there was almost! no doubt that the Boeing: 747 s would be ordered. i

Discussions with the Boeing Company are believed to have ended, and the main subject has now become the type of engine to be fitted to the machine.

Among the. three main contenders to supply the engines, Rolls-Royce has been the top. Rolls-Royce RB2II engines are fitted “to the new 747 s delivered to British Airways, and Qantas recently decided also to fit them. The Rolls-Royce engines are reputed to be more economical on fuel than other engines, and consequently aircraft fitted with them have a slightly longer range

— an important point because of Air New Zealand’s long-stage lengths.

But the recent steel strike in Britain has delayed deliveries, and given a / competitive' .edge to the' two American makers,-Pratt and Whitney, and General Electric.

i The model of fhe 747 [which Air New. Zealand is [reported to seek can carry [more than - 400 passengers 9600 km-at a cruising speed of almost 900km/h. Aviation industry sources said yesterday that if ,an airline bought a.new aircraft, it ■was normal to order at least three, The options would preserve the airline’s place in. the order ; bodk queue if' it needed more, planes.

! The 747 s and spares would cost about $4OO million. Boeing is said to have offered to help Air New Zealand find buyers, for several of Air New Zealand’s [older DClOs through its [brokerage firm. I Aviation sources have also | said that while Air New : Zealand wants Boeings, the Government is still to be convinced and therefore has not promised that the money will be provided. They said the Cabinet was divided: some Ministers and top National Party leaders

opposed any more State help for the airline.

They said that Air New Zealand should not have the new planes if it could not afford -them without more State funding. <. For months Air New Zealand has been studying long-range,-aircraft options. These included sticking with its 230-passenger DCIO-30s, or the European Airbus A3OO, Boeing .7475, and even Lockheed Tri-Stars. • At the week-end, the Minister of Tourism (Mr Cooper) said he believed 747 s were the best choice for Air New Zealand which currently run McDonnell Douglas DClOs on international routes. He said the Boeings were, a more competitive aircraft! and. if New Zealand was toi take advantage of tourism asl an export earner, 747 s were cheaper on a passenger-per-[ kilometre basis. ' Air New Zealand has told; the Government the type of new international aircraft it. wants, said the Prime Minister (Mr Muldoon) last ingHe said that he and another Cabinet Minister — be-[ lieved to be the Deputy Minister of Finance (Mr Templeton) — had had recent talks with Air New Zealand “and we know what they have ini mind.” I