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Sustainability: Air New Zealand commits to electric aircraft operations

Analysis

Air New Zealand is taking some tangible steps to advance the introduction of electric aircraft in airline fleets - the airline has ordered at least one such aircraft to conduct a commercial demonstration programme.

Many airlines have expressed interest in electric aircraft, but only a small number have actually ordered any.

Air New Zealand has signed a deal for one firm order from US-based Beta Technologies, with options for two more and purchase rights for a further 20.

The first of the Beta aircraft will be used in a very limited role, and even if more are delivered they will still have a small presence within the broader domestic network.

But the project is not just for show - it will help the airline work out how electric aircraft will work within its systems, which will pave the way for larger, more advanced zero emissions aircraft the airline intends to order later.

Obviously, such aircraft are aimed at contributing to airlines' sustainability initiatives. They will eventually help airlines meet emissions reduction goals in certain roles, in tandem with sustainable aviation fuel in more conventional fleet types.

Summary
  • Air New Zealand will start using the 'Alia' (electric aircraft) for cargo operations on a selected route from 2026.
  • The demonstration programme will likely be broadened at some point to include passenger flights.
  • The main aim is to help the airline prepare for its planned future order of larger electric aircraft.
  • Air New Zealand is among the first customers for the Alia, and the first major passenger airline.
  • New Zealand authorities will certify the aircraft in parallel with the FAA process.

The first of the airline's Alia flights will carry commercial cargo on a selected route

Air New Zealand announced its order for the Beta Technologies Alia electric aircraft on 6-Dec-2023. It had previously signalled that it would order electric or hybrid aircraft from a shortlist of four manufacturers.

The airline's initial aircraft is expected to enter service in cargo-only mode in 2026, after certification of the Alia has been completed by US and New Zealand authorities. Certification flights are already under way.

Air New Zealand will operate the Alia's first commercial demonstration flights in partnership with NZ Post, on a selected route set to be announced in early 2024.

The airline has sought expressions of interest from airports wanting to participate.

The programme may branch into passenger flights after the Alia has proven itself in a cargo role

Although Air New Zealand plans to use its first electric aircraft for a cargo-only commercial demonstration, it will consider broadening its role and adding more of the aircraft as the programme progresses.

"We certainly haven't discounted" using the aircraft for passenger flights, Air New Zealand CEO Greg Foran told Aviation Week Network. Once it has built up a significant volume of operational hours on cargo flights, demonstrating passenger services would be a natural next step, Mr Foran said.

The reason the airline chose to launch with cargo operations is "simply to allow us to move with more speed", said Mr Foran. "We want this up and going in 2026, and cargo gets us there quickly" from a certification and regulatory standpoint.

The airline remains interested in passenger operations, and there would be many customers who would want to fly in the Alia, Mr Foran said.

The Alia will be able to carry up to five passengers and a pilot.

While gaining experience is key, there may also be broader roles for the Alia

Air New Zealand is not revealing how much it will pay for the aircraft. The main aim of the programme is for the airline to gain experience with electric aircraft and learn about how they will fit in an operating environment.

This will help the airline with its longer-term ambition to order a green hydrogen-electric aircraft to begin replacing its DHC-8-300 turboprops from 2030, Mr Foran said.

However, securing purchase rights for another 20 of the Alias gives the airline flexibility to expand the scope of the programme if it chooses to.

While any further applications are speculative at this stage, one potential use of the Alia could be to provide service to small communities that do not have enough demand to justify larger aircraft, Mr Foran said.

Any such broader application would have to make commercial sense, said Mr Foran. He noted that it is too early to tell if costs of operating a larger Alia fleet would come down enough to be viable.

Air New Zealand is aiming to be an early adopter of electric aircraft

Air New Zealand is the first legacy passenger airline to place a firm order for the Alia, said Beta CEO Kyle Clark. UPS has also placed orders, and the US military is already using a version of the aircraft.

It is yet to be determined who will be the first commercial customer to take delivery of the Alia, but Air New Zealand will be among the first, Mr Clark said. The airline has selected the conventional take off version.

Beta is currently undertaking the certification programme for the Alia in the US through the FAA. The propulsion system is due to be certified in 2024, and the aircraft itself in 2025. A vertical take off version is due to follow in 2026.

The Alia's passenger operations are expected to be certified 18-24 months after cargo operations are launched, Mr Clark said.

New Zealand's Civil Aviation Authority (CAA) will carry out its own certification process in parallel with the FAA, relying heavily on the work done by the US regulator, said Steve Smyth, director of the CAA's Emerging Technologies programme. Both processes will occur in the US, with the CAA sending personnel there as needed.

The Alia operations will put Air New Zealand further along the experience curve for electric aircraft

Purchasing electric aircraft - even for a commercial demonstration - represents an important stage in Air New Zealand's longer-term zero-emissions aircraft ambitions.

The airline will be able to work out some of the challenges posed by incorporating this technology into its network. The knowledge gained will be invaluable, both for the airline and other parties, such as airports, power supply companies and the aircraft manufacturer.

The real pay-off for Air New Zealand will be in laying the groundwork for its planned order for larger green hydrogen electric aircraft. As Mr Foran said, this preparation work means that instead of starting from square one, it will be starting from square 10.

Another important aspect is that in ordering aircraft and setting a timeline for further orders, Air New Zealand is giving electric aircraft manufacturers confidence that there will be a market for their products, therefore making investment in development is less risky.

More details on the Alia and its potential use in New Zealand

Source: Air New Zealand.

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