Air New Zealand and aviation finance firm Avolon have signed a letter of intent for the sale and lease back of an electric cargo aircraft from manufacturer Beta as part of a wider programme to explore the use of electric and hydrogen aircraft.
The deal includes 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 as well as the purchase of a Beta Alia CX300 electric cargo aircraft.
The conventional take-off and landing (CTOL) Alia CX300 is designed by US-based BETA Technologies and will carry up to 0.56 tonnes of cargo per flight.
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”.
Avolon chief executive Andy Cronin said: “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, added: “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.”
The order is part of Air New Zealand’s Mission Next Gen Aircraft programme where the airline 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.
The deal is not the first for an electric cargo aircraft built by Beta. In 2021, UPS announced a deal for 10 aircraft, which were scheduled to begin arriving in 2024, with an option to purchase up to 150 of the aircraft.
UPS said the 0.63 tonne capacity aircraft is suited for time-sensitive deliveries that would otherwise fly on small fixed-wing aircraft. They will take-off and land at UPS facilities.
