By Robb M. Stewart

MELBOURNE, Australia--Air New Zealand Ltd. (AIR.NZ) said Monday it has committed to buy eight Boeing Co. (BA) 787-10 Dreamliner aircraft.

At current list prices, the order has a value of US$2.7 billion, though Air New Zealand said it had negotiated a significant discount and the companies had agreed not to disclose the actual price.

The order, which has an option to increase the number of aircraft to as many as 20 and has substitution rights that would allow a switch from the larger 787-10 aircraft to smaller 787-9s, will replace a current fleet of eight Boeing 777-200 aircraft that will be phased out by 2025. The first of the new jets will join the airline in 2022, adding to a current fleet of 13 787-9 Dreamliners.

The new aircraft will be powered by GE Aviation's GEnx-1B engines, Air New Zealand said.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 26, 2019 18:17 ET (22:17 GMT)

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