• Supporting the commercialisation of new technologies
• Agreement on sale and leaseback of CTOL electric cargo aircraft

Dublin | 8 January 2025: Avolon, a leading global aviation finance company, and Air New Zealand have agreed a memorandum of understanding to partner on research to support the commercialisation of electric aircraft, and other novel propulsion technologies including battery hybrid and hydrogen. The agreement also includes the signing a letter of intent (LOI) for the sale and leaseback of a BETA Alia CX300 electric cargo aircraft.

The conventional take-off and landing (CTOL) Alia CX300 is designed by BETA Technologies and will carry up to 560kg of cargo per flight for the airline. The aircraft is due for delivery in 2026 and will be used by Air New Zealand to carry cargo between Wellington and Blenheim through its partnership with New Zealand Post.

The wider collaboration between Avolon and Air New Zealand reflects both companies’ drive to take leadership positions in supporting the development of clean tech aircraft, contributing to the decarbonisation of air travel, and supporting the aviation sector’s net zero 2050 ambition.

Andy Cronin, CEO, Avolon commented: “Lessors have an important role to play in supporting the commercialisation of clean tech aircraft to help the aviation sector achieve its net zero ambitions. This partnership with Air New Zealand reflects Avolon’s commitment to supporting innovation, building on our investment in Vertical Aerospace and our involvement with Airbus’ ZEROe Project.”

Richard Thomson, Chief Financial Officer, Air New Zealand commented: “Introducing new technology into the aviation sector is not something any one organisation can do alone. It will require engagement across the board including regulators, maintenance and supply chain, day of operations and financing. With regard to the latter, this partnership with Avolon is another important step in our Next Generation Aircraft programme of work. While only a small trial, it will allow us to understand what the financing of this programme could look like in the future so we’re incredibly grateful for Avolon leaning in and supporting us on our journey.”

Air New Zealand

• Through its Mission Next Gen Aircraft programme, Air New Zealand sought and received ideas and insights from 30 organisations, selecting four partners to work closely with on its goal of launching commercial flights using next generation aircraft in 2026. BETA’s ALIA is the first commercial order in the programme.
• Air New Zealand will initially operate the aircraft as a cargo only service in partnership with New Zealand Post between Wellington and Blenheim

Avolon

• Avolon is taking a leadership position on future technologies and in 2021 invested in eVTOL manufacturer Vertical Aerospace and through its innovation affiliate, Avolon-e, placed an order for up to 500 of Vertical Aerospace’s VX4 aircraft. The order was placed with 5 operators within 9 months with customers including JAL, Air Asia, and Gözen Holdings.
• In July 2024 Avolon partnered with Airbus to support the development of hydrogen-powered commercial aircraft through Airbus’ ZEROe Project. Airbus and Avolon are investigating how future hydrogen-powered aircraft could be financed and commercialised, and how they might be supported by the leasing business model.

About Avolon

Avolon is a leading global aviation finance company connecting capital with customers to drive the transformation of aviation and the economic and social benefits of global travel. We pride ourselves on our deep customer relationships, our collaborative team approach, and our fast execution. We invest with a long-term perspective, diversifying risk and managing capital efficiently to maintain our strong balance sheet.  Working with 140 airlines in 59 countries, Avolon has an owned, managed, and committed fleet of 1,129 aircraft, as of 31 December 2024 on a pro forma basis including the proposed acquisition of Castlelake Aviation Limited. www.avolon.aero

About Air New Zealand

Air New Zealand’s story started in 1940, first taking to the skies between Auckland and Sydney on a flying boat – a Short S30. Known for its warm Kiwi hospitality, today, the airline has 104 operating aircraft ranging from Boeing 787-9 Dreamliners and Airbus A320s to ATRs and Q300s, offering customers comfort in the latest most efficient jets and turboprops. It’s a modern fuel-efficient fleet with an average age of 7.3 years. Air New Zealand’s global network of passenger and cargo services centres around New Zealand. Pre-Covid, the airline flew more than 17 million passengers every year, with 3,400 flights per week. Air New Zealand was recently named the World’s Safest Airline by the Australian rating service AirlineRatings.com, highlighting the airline’s laser-focus on safety. Last year, Air New Zealand won Best Corporate Reputation in New Zealand – 8th year in a row.

Air New Zealand has a well-connected domestic business, connecting customers and cargo to 20 different regions around New Zealand. Internationally, the airline has direct flights to major cities across Australia, Asia, the Pacific Islands and the US, and through its strong relationships with alliance partners, offers customers more choice and convenience to connect further afield to hundreds of destinations. Air New Zealand has a particular focus on sustainability and its Sustainability Framework helps guide the airline’s efforts in tackling some of New Zealand’s and the world’s most complex challenges. Air New Zealand aircraft are proudly identified by its distinct tail livery of the Mangōpare, the Māori symbol of the hammerhead shark which represents strength, tenacity, and resilience. www.airnewzealand.com