Avolon, a aviation finance company, has entered into a memorandum of understanding (MoU) with Air New Zealand to collaborate on research supporting the commercialization of electric aircraft and other innovative propulsion technologies, including battery hybrid and hydrogen-powered systems.
As part of the agreement, the two companies signed a letter of intent (LOI) for the sale and leaseback of a BETA Alia CX300 electric cargo aircraft.
The Alia CX300, a conventional take-off and landing (CTOL) aircraft designed by BETA Technologies, can carry up to 560kg of cargo per flight.
The aircraft is expected to be delivered in 2026 and will be deployed by Air New Zealand to transport cargo between Wellington and Blenheim in partnership with New Zealand Post.
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, CFO, 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.”