Air New Zealand has signed a deal to purchase 13 next generation Airbus A320s in a move that will cut its fuel use by up to 15 per cent on its trans-Tasman and Pacific Islands flights.

The aircraft, with a list price of $NZ1.6 billion ($1.47 billion), will replace its current fleet of 13 international short-haul A320s. The A320neo, or “new engine options", have more fuel efficient engines and sharklet wing tip devices to assist in lower operating costs. The first A320neo is due in late 2017, with the remainder of the aircraft to be delivered at intervals until 2019.