The Royal New Zealand Air Force has formally signed a six-year lease-to-buy agreement to acquire two Airbus A321XLR aircraft, replacing the service’s aging Boeing 757 strategic transport fleet.
Graphic: RNZAF
Chief of Defence Force Air Marshal Tony Davies recently signed the arrangement with US-based Air Lease Corporation. The deal, valued at $620 million in capital costs with an additional $80.86 million in four-year operating costs, follows the government’s August announcement that it had approved the acquisition.
The new aircraft will be based at RNZAF Base Auckland and operated by No. 40 Squadron, with delivery expected in 2028.
The two Boeing 757s currently in service were purchased second-hand in 2003 and are now 32 years old. According to the Ministry of Defence, the aircraft have become increasingly prone to breakdowns and require more time for routine maintenance.
The A321XLR offers improved range and efficiency over the outgoing 757s. The new aircraft can accommodate approximately 122 passengers and carry 9,100 kilograms of cargo, with a range of 8,700 kilometres.
The RNZAF uses its strategic transport aircraft primarily to move military personnel and equipment over long distances at short notice. This includes operational deployments, humanitarian and disaster relief missions throughout New Zealand and the Pacific, and government trade and diplomatic delegations.
The Ministry of Defence noted that the strategic airlift fleet complements the NZDF’s C-130J tactical transports, which are used in conflict areas and carry heavier equipment over shorter distances. Both aircraft types are considered necessary given New Zealand’s geographic isolation.
Air Vice-Marshal Darryn Webb, Chief of Air Force, said the A321XLR’s extended range would particularly benefit Antarctic operations.
“The extra-long-range capability of the Airbus A321XLR will also improve our ability to conduct key missions to Antarctica with greater safety and surety,” Webb said.
He added that strategic air transport remains vital for New Zealand’s ability to respond to humanitarian crises, support defence deployments, and facilitate trade missions.
Alongside the contract signing, the RNZAF unveiled the livery design for the incoming aircraft. The new A321XLRs will wear grey paint with the service’s kiwi roundel, matching the current RNZAF colour scheme.
Defence officials said the design was chosen to clearly identify the aircraft as military platforms while remaining instantly recognisable as New Zealand aircraft in any environment.
As a commercial off-the-shelf acquisition, the A321XLRs will require minimal modification and are expected to be operational soon after delivery in 2028. The aircraft will be fitted with a standard commercial layout.
The project received funding in Budget 2025, subject to final business case approval, which occurred in August. The formal contract signing in November completed the procurement process.
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