Air New Zealand unit Air Nelson confirmed yesterday it would buy two extra Bombardier Q300 aircraft to boost capacity into and out of Nelson and other regional centres.
Air Nelson said the list price for a 50-seat plane is US$16 million ($23 million), although it did not sayif it paid that price.
The purchase will increase the airline's Q300 fleet to 23 by May 2009.
Air Nelson at present has 17 Q300 aircraft operating. Its 18th was handed over to Air Nelson in Montreal on Friday and will go into service next month. It already has another three aircraft on order.
The airline's general manager, John Hambleton, noted that by 2009 it would have increased capacity by 40 per cent on present levels.
Air New Zealand has had the Nelson market and much of the regional domestic market largely to itself since the collapse of Origin Pacific last year.
Origin accused Air New Zealand of anti-competitive practices to force it out of business, an accusation Air New Zealand denies.
Mr Hambleton said the two new aircraft would give Air Nelson the flexibility to look at adding new routes.
The airline expected to create about 50 new jobs over the next 18 months to meet growth, including roles for pilots, crew and engineers.
He said Air Nelson carried more than 500,000 customers into and out of Nelson annually and contributed more than $20 million annually in wages and contract services to the local economy.
