Turboprop Or Jet? That's The Question For NZ

Air New Zealand is planning a $300 million fleet upgrade to strike out on new routes, and  gradually replace the fleet of 11 ATR72-500 regional turboprops.

Bruce Parton, Air New Zealand group general manager, said a number of options are under consideration, reports the Dominion Post.

The first option is 104-seater Embraer E-190 jet which can land at almost any airport in the country.

The airline's plan is to help bolster the New Zealand tourism industry.

Though they are faster and more comfortable, jets are more expensive and would come with higher fares than the two turboprop options being considered, according to company officials.

French manufacturer ATR is pushing the 68-seat ATR72-600, the next generation of the current 500 model, as the most fuel efficient and more environmentally friendly aircraft in its category.

Air New Zealand introduced Canada's Bombardier two years ago which has the 90-seat Q400X, a larger version of the Q300.

Parton said most passengers preferred to fly on a jet rather than a noisier turbo-prop aircraft. The question is whether passengers were prepared to pay a 10 per cent more for the jet service.

"This will come down to what the customer choice is," Parton said.

House of Travel retail director Brent Thomas said leisure passengers who are thriftier--make up the bulk of regional markets--would opt for lower fares.

Bigger planes, however, would be welcomed by business travelers who are finding it difficult to get walk up flights, said Thomas.

The more expensive jet service could also leave Air New Zealand open and vulnerable to a competitor flying turboprop aircraft.

Parton said his airline is keeping a close eye on customer feedback in regional Australia where Virgin Blue has introduced the smaller Embraer E-170 jet to compete against Qantas, which uses Q300s.

If there was a clear preference for the jet, that could swing the decision in favor of the E-190, in spite of increased fares.

But the Q400X looks like it may be the winner when a final decision is made around March. The aircraft meets Air New Zealand's requirement for a fast, economical, 90-seat-plus aircraft that will increase the airline's capacity.

Air New Zealand also has purchase options on the earlier Q400 model, which can be converted for the Q400X.

FMI: www.airnewzealand.com