Air New Zealand's Mount Cook Airlines is staying with ATR but rather than purchasing new aircraft is buying the seven ATRs it currently has on operating leases.
Mount Cook general manager Mark Pitt says the airline has decided against buying new aircraft and instead is buying the seven ATR 72-500s it has on operating leases from Orix Aviation.
The airline had a formal pitch in which it considered placing an order for 13-17 ATR 72-500/600s, Bombardier Q400/Q400Xs and Embraer 170s.
Pitt says Orix "offered a really good deal" and when Mount Cook did the sums decided it made more economic sense to get these rather than purchase new aircraft.
He says the Orix aircraft are in good condition and will still be young aircraft in 2015.
Mount Cook has no need to grow its fleet in the short-term because New Zealand has just entered into a recession, says Pitt.
He also says buying the leased aircraft allows the airline "to minimise its capital expenditure" and even though there are some advantages in operating new aircraft this "was not enough to offset the significant cost of capital to replace the fleet".
According to Flight's ACAS database Mount Cook's ATRs from Orix were built in 1999 and 2000.
He says "from next year we also plan to revitalise and refresh the ATR interiors".
The aircraft will only exit the fleet when the "next generation of turboprop aircraft" come into the market, says Pitt, adding that Mount Cook considers 90-seat turboprops as suiting its future needs.
If there were 90-seat turboprops in the market today the airline would lease some, says Pitt. But there are none because these new types are still in development.
"Bombardier is a little more advanced" in development "because they are talking about stretching the Q400 whereas ATR says it is not about a stretch".
"ATR want to build a new aircraft," he adds.
Embraer, which currently makes regional jet aircraft, has said publicly it is looking at re-entering the turboprop market.
Pitt says this is something Embraer discussed with Mount Cook during the pitch.
Source: Air Transport Intelligence news
