New Zealand to spend $2.7bn on Airbus A321XLRs and Seahawks in major defence aviation upgrade
August 21, 2025
New Zealand is embarking on its biggest defence aviation upgrade in decades, with $2.7 billion earmarked for new Airbus A321XLR long-range transports and MH-60R Seahawk naval helicopters.
The move comes after a string of embarrassing breakdowns involving the Defence Force’s ageing aircraft, and is the first major commitment under the 2025 Defence Capability Plan.
Defence Minister Judith Collins and Foreign Minister Winston Peters today announced that five Lockheed Martin-built MH-60R Seahawk helicopters and two Airbus A321XLR aircraft have been selected to upgrade New Zealand’s military air fleet.
The investment is one of the first major commitments under the 2025 Defence Capability Plan (DCP), which outlines $12 billion in future defence spending.
Airbus A321XLRs to replace New Zealand’s ’embarrassing’ Boeing 757s
While not the sole reason for the aircraft replacement, a series of high-profile aircraft failures have amplified calls to address the vulnerability of the NZDF’s ageing fleet
During Prime Minister Christopher Luxon’s trade mission to Japan in June 2024, a Boeing 757 was grounded in Papua New Guinea due to a blown fuse. Luxon was forced to switch to a commercial flight, and 50 delegates were stranded in Port Moresby.
Another mechanical issue affected another NZDF Boeing 757 during a trip to Melbourne in March this year.
The Airbus A321XLRs will replace these two 30-year-old 757s and are being acquired through a six-year lease-to-buy arrangement. The deal carries a capital cost of $620 million and an operating cost of $80.86 million over four years.
With the ability to fly up to 8,700 km (5,400 miles) non-stop, the A321XLR significantly increases New Zealand’s strategic airlift capacity. The aircraft will be based at Whenuapai and operated by the Royal New Zealand Air Force’s No. 40 Squadron, supporting a range of missions including:
- Military transport of troops and cargo
- Humanitarian and disaster relief across the Pacific
- Support for Antarctic operations
- Diplomatic and trade missions involving large delegations
Air Marshal Tony Davies, Chief of Defence Force, said the aircraft’s extended range offers greater flexibility compared to the current 757s.
“This range is equivalent to flying from Auckland to Singapore. It allows missions with fewer stopovers and the ability to return from Antarctica if conditions on the ice prevent landing,” he said.
The aircraft are expected to be delivered in early 2028, with final contract negotiations nearing completion.
Seahawk helicopters to enhance New Zealand’s naval reach
The bulk of the announced investment of over $2 billion will go toward acquiring five MH-60R Seahawk helicopters to replace the Navy’s current maritime helicopters.
The Seahawks, used by Australia, the United States, and several other allies, offer multi-role capabilities including anti-submarine warfare, surveillance, and surface strike missions.
Each Seahawk is capable of operating from a frigate, with a typical range of 963km, a top speed of 333km/h, and can carry up to 1,500kg of payload. They are armed with Mk54 anti-submarine torpedoes, AGM-114 Hellfire missiles, machine guns, and precision weapon systems.
“These five Seahawks will increase the offensive and defensive capability and surveillance range of New Zealand’s frigates,” said Collins. “They also ensure interoperability with our ally Australia and other partner defence forces.”
The helicopters will be procured through the US Foreign Military Sales (FMS) programme, a direct government-to-government procurement model used previously for acquiring the C-130J Hercules and P-8A Poseidon aircraft.
According to Air Marshal Davies, the FMS model allows New Zealand to benefit from the US Government’s buying power. “They negotiate directly with manufacturers on our behalf, securing better prices and delivery timelines. It’s a more efficient process and proven to work well for us.”
New Zealand’s shift in strategic posture
Foreign Minister Winston Peters said the purchases reflect the Government’s broader commitment to national security in the face of rising global instability.
“Global tensions are increasing rapidly, and we must invest in our national security to ensure our economic prosperity,” Peters said. “These acquisitions strengthen our ability to act independently, support partners, and project stability in the Pacific.”
The Defence Capability Plan, released in April 2025, calls for a step-change in military readiness, with reviews every two years to respond to an evolving security environment. The plan also sets out future commitments across land, sea, air, and cyber domains.
Collins said ensuring NZDF personnel have reliable, modern platforms is essential to fulfilling their mission. “Our people do an outstanding job. This investment ensures they’re equipped with tools fit for today’s demands and tomorrow’s challenges.”
