Air New Zealand (ANZ) will acquire 14 Airbus A320 aircraft to replace its 15 Boeing 737-300s.
The IAE V2500 engined aircraft can fly up to 3,000nm at a speed of Mach 0.82.
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The carrier has also received purchase rights for a further 11 A320 aircraft under the deal.
The A320s have 171 seats, compared with the previous 133 for its 737s and will be operated on domestic routes.
