Government settles on two options for 757, fast-tracks replacement for 2027

The RNZAF's 757 on the tarmac in Papua New Guinea. Photo / Nate McKinnon, RNZ

The search for a replacement to the RNZAF’s aged Boeing 757 airplanes has been narrowed down to two options, a Boeing 737 Max 8 or Airbus A321 NEO.

A news release on the Ministry of Defence website said the Government has released a tender to market to replace the 757s by the end of 2027 – much sooner than initially thought.

“The cost of maintaining and issues with reliability of the current fleet, alongside the competitiveness of the market for aircraft of this type, has meant the business case process has been fast-tracked,” the release said.

“This work has been fast-tracked ahead of the upcoming Defence Capability Plan. However, the final business case development will take into account any decisions made during this process,” it said.

The Ministry said the Government is looking for “commercially available, off-the-shelf Boeing 737 Max 8 or Airbus A321 narrow-body aircraft”.

Defence Minister Judith Collins said the 757s are “old and need replacement”.

“The market for aircraft of this type is competitive so Defence needs to go to tender now in order to secure a replacement by the end of 2027,” she said.

“The aircraft are a key asset for New Zealand as we step up on the world stage. The 757s are old, unreliable, and expensive to maintain and it is vital we have the ability to transport people and equipment and undertake trade and diplomatic missions around the world.,” she said.

Collins said the tender was designed to select a preferred provider and would be used to inform the final business case, but did not commit the Crown to any expenditure.

The 757s are most commonly known for their role in transporting the Prime Minister and other official delegations on overseas trips, despite this forming only a small part of their function. They are often used to transport members of the Defence Force as well as supplies. One of the planes is currently involved in disaster relief in Vanuatu.

Prime Minister Christopher Luxon has been frustrated by the planes’ propensity to break down and cause delays to trips. One broke down recently en route to Japan, necessitating an embarrassing and costly rescue effort for the media and business delegation who were stranded in Papua New Guinea. Labour Leader Chris Hipkins has voiced support for replacing the planes. Governments in the past have avoided replacing them, despite their age, for fear of been seen to splurge on themselves.

Luxon will feel at home in the Airbus A321. A version of this plane is one of the most common aircraft in the Air New Zealand Fleet. The Boeing 737 Max 8 is famous for two deadly crashes early in the aircraft’s life, although Boeing and regulators insist problems that led to the crashes have now been resolved.

The Defence Force website said the tender was designed to select a “preferred provider for the replacement of the B757 aircraft.

“The information provided will be used to inform the final business case for Cabinet consideration.

“The tender process does not commit the Crown to any expenditure,” they said.

Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.