Commercial Aviation
Air New Zealand Faces Operational Crisis Amid Engine Maintenance Issues

Introduction
Air New Zealand, the national carrier of New Zealand, is facing a significant operational crisis as engine maintenance issues continue to ground a substantial portion of its fleet. The airline has warned that the situation is expected to worsen in the coming months, with up to 11 aircraft—nearly 20% of its fleet—likely to be out of service. This has led to capacity reductions, route suspensions, and financial strain, despite the airline’s efforts to mitigate the impact.
The grounding of aircraft is not a new issue for Air New Zealand, but the scale of the problem has escalated in recent months. The airline has been grappling with engine availability problems, particularly affecting its A321neo and B787-9 aircraft. These challenges are compounded by broader economic headwinds, including weaker domestic demand and rising operational costs. As a result, Air New Zealand is navigating a complex landscape of operational disruptions and financial pressures.
Operational Challenges
Engine Maintenance Issues
Air New Zealand’s current predicament stems from engine maintenance issues, primarily affecting its Pratt & Whitney PW1100 and Rolls-Royce engines. In the latter half of 2024, the airline had four A321neo and two B787-9 aircraft grounded due to these issues. This number is expected to rise to five A321neo and three B787-9s in the first half of 2025, with further increases anticipated in the second half of the year.
CEO Greg Foran has expressed frustration with the lack of reliable maintenance data from engine manufacturers, particularly Rolls-Royce. “If we do get data from Rolls-Royce, we tend to dial it back a bit,” Foran said during a recent investors’ call. This uncertainty has made it difficult for the airline to plan effectively, leading to capacity reductions and route suspensions.
“Our fleet situation will not improve in the near term. In fact, it’s likely to become more challenging over the remainder of this financial year and into the first half of FY2026.” – Greg Foran, CEO of Air New Zealand
Financial Impact
The grounding of aircraft has had a significant financial impact on Air New Zealand. The airline reported a net profit of NZD106 million (USD61 million) for the six months ending December 31, 2024, but this was down 18% from the previous year. The airline’s network capacity was reduced by 4% due to grounded aircraft, leading to a decline in passenger numbers and revenue.
Compensation from engine manufacturers has provided some relief, but it has not been enough to offset the full financial burden. Air New Zealand received NZD94 million (USD54 million) in compensation in the last half year, but estimates that the adverse financial impact was closer to NZD40 million (USD23 million). This has put additional pressure on the airline’s financial performance and forced it to make difficult decisions, such as suspending flights to Seoul Incheon and Chicago O’Hare.
Future Outlook
Fleet Expansion and Delays
Air New Zealand is pinning its hopes on the delivery of new aircraft to alleviate some of the pressure on its fleet. The airline has three B787-10s and five B787-9s on order, but the first deliveries have been delayed. Originally scheduled for February 2026, the deliveries are now expected to be a few months behind schedule. This delay has forced the airline to rely on leased B777-300ERs to cover the capacity shortfall.
Refurbishment of the existing B787-9 fleet is also running behind schedule, with only one aircraft currently undergoing upgrades at the ST Aviation Services facility in Singapore. The airline expects to have more than half of its B787 fleet refurbished by the end of 2026, but this timeline remains uncertain given the current challenges.
Broader Industry Context
Air New Zealand’s struggles are not unique in the aviation industry. Airlines worldwide are facing similar challenges related to engine maintenance, supply chain disruptions, and economic fluctuations. The situation highlights the need for robust risk management and strategic planning in the face of operational and financial pressures.
Despite these challenges, Air New Zealand remains committed to its long-term strategy of investing in modern, fuel-efficient aircraft. The airline’s resilience and adaptability have been key to navigating the current crisis, but the road ahead remains uncertain. As CEO Greg Foran noted, “Delivering the performance we have and maintaining such a strong balance sheet is a real credit to our people.”
Conclusion
Air New Zealand is facing a challenging period as engine maintenance issues continue to ground a significant portion of its fleet. The airline has taken steps to mitigate the impact, including route suspensions and compensation negotiations, but the situation is expected to worsen in the coming months. The grounding of aircraft has had a substantial financial impact, leading to reduced capacity, lower passenger numbers, and declining revenue.
Looking ahead, Air New Zealand is focused on the delivery of new aircraft and the refurbishment of its existing fleet. However, delays and ongoing operational challenges mean that the airline’s recovery will take time. The broader aviation industry is also grappling with similar issues, underscoring the need for resilience and adaptability in the face of uncertainty. As Air New Zealand navigates these challenges, its ability to maintain a strong balance sheet and deliver value to shareholders will be critical to its long-term success.
FAQ
Question: How many aircraft are currently grounded at Air New Zealand?
Answer: As of February 2025, Air New Zealand has five A321neo and three B787-9 aircraft grounded due to engine maintenance issues.
Question: What is the financial impact of the aircraft groundings?
Answer: The groundings have reduced the airline’s network capacity by 4%, leading to a decline in passenger numbers and revenue. Compensation from engine manufacturers has not fully offset the financial burden.
Question: What is Air New Zealand doing to address the issue?
Answer: The airline is focusing on the delivery of new aircraft, refurbishing its existing fleet, and negotiating compensation with engine manufacturers. It has also suspended some routes to manage capacity.
Sources: ch-aviation, RNZ, TransportTalk
Commercial Aviation
KlasJet Secures FAA Part 129 Approval for US ACMI Operations
Lithuanian wet-lease carrier KlasJet gains FAA Part 129 approval to conduct ACMI and charter flights involving the United States.

Lithuanian charter and wet-lease operator KlasJet has secured Part 129 Operations Specifications approval from the US Federal Aviation Administration (FAA), clearing the carrier to provide immediate capacity to Airlines facing fleet constraints.
Announced in a press release on September 17, 2026, the authorization allows the Avia Solutions Group subsidiary to conduct Aircraft, Crew, Maintenance, and Insurance (ACMI) and charter operations involving the United States. The approval positions KlasJet to capitalize on a North-America market currently managing seasonal demand fluctuations and ongoing aircraft Delivery delays.
Regulatory clearance and operational readiness
The FAA approval marks the culmination of a multi-agency certification process. KlasJet confirmed it has secured all necessary authorizations from the Department of Transportation (DOT), the Transportation Security Administration (TSA), and Customs and Border Protection (CBP) to commence commercial flights to, from, and through US territory.
Diako Rad, Director Flight Operations at KlasJet, noted that the regulatory clearance fundamentally shifts the company’s discussions with prospective US clients.
“The question has changed when we are in discussion. Previously, when a carrier asked whether we could operate in the US, the answer was that we were working towards it. Today, the answer is yes,” Rad stated in the press release.
The ACMI model allows airlines to wet-lease aircraft to cover temporary capacity shortfalls without committing to long-term leases or hiring additional crew. Rad emphasized that KlasJet provides the aircraft, crews, maintenance, and insurance, integrating directly into the client airline’s existing network.
Boeing 737 fleet composition and regional expansion
KlasJet currently operates a dedicated ACMI fleet of seven Boeing 737-800 aircraft, each configured to accommodate between 186 and 189 passengers. The carrier also maintains a separate VIP charter fleet comprising two Boeing 737-300s and three Boeing 737-500s.
The US authorization builds upon the company’s broader North American expansion strategy. In late 2023, KlasJet obtained a Canadian Foreign Air Operator Certificate (FAOC), establishing its initial footprint in the region.
Driven by global aircraft shortages, KlasJet reported that its ACMI block hours and passenger volumes nearly tripled in 2024 compared to the previous year. To meet this sustained demand, Chief Executive Officer Justinas Bulka has previously outlined a target to expand the carrier’s ACMI fleet to 40 Boeing 737-800s by 2028.
AirPro News analysis
We view KlasJet’s entry into the US market as a timely development for domestic operators struggling with capacity constraints. With major original equipment manufacturers (OEMs) facing persistent supply chain bottlenecks and delivery delays, US airlines are increasingly reliant on wet-lease providers to protect their schedules during peak travel seasons. By securing FAA Part 129 approval, KlasJet transitions from a regional European player to a viable capacity provider in the world’s largest aviation market. This move aligns with the broader strategy of its parent company, Avia Solutions Group, which actively positions its various subsidiary airlines across multiple global jurisdictions to ensure year-round fleet utilization and mitigate regional low-season risks.
Sources: KlasJet
Photo Credit: KlasJet
Route Development
Schiphol Launches Tenders for €10 Billion Infrastructure Program
Amsterdam Airport Schiphol opens five major construction tenders as part of its €10B investment program running through 2035.

Royal Schiphol Group has initiated a procurement process for five major construction and maintenance tenders, marking a structural shift in how Amsterdam Airport Schiphol (AMS) will manage its infrastructure through the next decade.
Announced in a press release on September 25, 2026, the tenders are a foundational element of the Airports €10 billion investment program running through 2035. The new nine-year framework agreements will take effect in 2028 when current contracts expire, transferring greater direct control over asset planning and infrastructure management back to the airport operator.
Scope of the infrastructure overhaul
The €10 billion master plan, initially outlined in late 2025, targets overdue maintenance and funds major capital projects, including the construction of a new Terminal South and extensive renovations to existing piers. The five newly announced tenders divide the required work across terminals, technical installations, aprons, and operational buildings.
Specific assets covered under the upcoming Contracts include concrete aprons, passenger bridges, gate-based power, pre-conditioned air supply systems, and charging infrastructure. The scope also extends to technical rooms, retail units, climate control systems, and airport fire stations.
Royal Schiphol Group Chief Infrastructure Officer Bart Smolders described the initiative as the largest renewal and maintenance program in the airport’s history. The stated objective is to elevate the facility back to the standard of Europe’s leading aviation hubs.
Shifting the contracting model
The transition to new framework agreements in 2028 represents a change in Schiphol’s operational Strategy. Rather than fully outsourcing asset management, the airport intends to combine market expertise with increased internal direction and control.
Smolders noted that achieving the €10 billion renewal requires strong partners, with the tenders laying the foundation for long-term collaboration under this revised model. The nine-year duration of the framework agreements is designed to provide stability for these Partnerships while ensuring the airport maintains oversight of its critical infrastructure.
AirPro News analysis
We view this procurement strategy as part of a broader consolidation effort by Royal Schiphol Group to regain operational authority over its critical services. This mirrors recent moves on the ramp; in June 2026, the airport reduced its authorized ground handling companies from six to three following a public tender process. While that specific reduction faces legal challenges from outgoing providers, the overarching strategy is clear. By bringing asset planning and infrastructure management closer to the center, Schiphol is attempting to eliminate the fragmentation that can delay major modernization projects and complicate daily operations.
Sources: Royal Schiphol Group
Photo Credit: Royal Schiphol Group
Commercial Aviation
FAA Certifies McKinney National Airport for Commercial Service
McKinney National Airport receives FAA Part 139 certification, the first new Texas commercial airport certificate since 2005.

The Federal Aviation Administration (FAA) has issued a Part 139 Airport Operating Certificate to McKinney National Airport (TKI), legally authorizing the North Texas facility to commence scheduled commercial passenger service.
Announced in an agency press release on September 24, 2026, the certification marks the first time a Texas airport has received a new Part 139 certificate since 2005. The regulatory approval officially transitions the airfield from a general aviation and corporate reliever facility into the Dallas-Fort Worth region’s third commercial passenger airport.
Federal infrastructure investments and terminal development
The certification follows a series of targeted federal investments designed to bring the airport up to commercial passenger standards. The FAA has directed $9 million toward infrastructure improvements at the McKinney facility, funding taxiway construction and upgrades to the federal contract air traffic control tower.
These physical improvements build upon a 2025 U.S. Department of Transportation initiative that installed high-speed fiber optic cable at the airport to enhance communication systems as part of a broader air traffic control modernization effort.
Dan Edwards, FAA Associate Administrator for Airports, stated in the press release that the agency is building a stronger National Airspace System by providing modern and reliable local airports. He noted that accommodating commercial flights will provide the rapidly growing community around McKinney with greater access to air travel options.
To support the influx of passengers, the City of McKinney is finalizing a new 46,000-square-foot passenger terminal. McKinney National Airport Director of Aviation Dan Carley confirmed that construction is on schedule for the facility’s opening on November 11, 2026, noting the project is generating significant excitement within the local community.
Avelo Airlines establishes new North Texas base
Ultra-low-cost carrier Avelo Airlines is currently the sole operator committed to serving the newly certified airport, positioning the facility as a secondary alternative to Dallas/Fort Worth International Airport (DFW) and Dallas Love Field (DAL).
Avelo plans to base three 184-seat Boeing 737-800 Next-Generation aircraft at the airport, a move the airline expects will create approximately 150 local jobs. Inaugural flights are scheduled to coincide with the terminal opening on November 11, 2026.
The carrier is aggressively scaling its initial network from the airport. By December 2026, Avelo will serve nine nonstop destinations from McKinney. This includes four newly announced routes to Atlanta, Denver, Nashville, and New Orleans, which are scheduled to launch between December 16 and December 17, 2026.
“The response from North Texas has been extraordinary, and the bookings back that up,” Avelo Airlines Founder and CEO Andrew Levy said regarding the initial demand for the new routes.
AirPro News analysis
The issuance of a new Part 139 certificate is a rare event in modern U.S. aviation. The 21-year gap since the last such certification in Texas underscores the high regulatory and financial barriers to entry for converting general aviation fields into commercial passenger facilities.
For Avelo Airlines, securing a dedicated base at McKinney National Airport provides a strategic foothold in Collin County, one of the fastest-growing and most affluent suburban markets in the United States. By operating out of a secondary airport, the carrier avoids the slot constraints, taxi delays, and high operational costs associated with DFW and DAL. If the model proves successful, we expect it may encourage other municipalities with underutilized reliever airports to pursue Part 139 certification to attract ultra-low-cost carriers seeking uncongested infrastructure.
Sources: Federal Aviation Administration
Photo Credit: McKinney National Airport
-
Space & Satellites5 days agoSpaceX Starship Flight 14 Targets First Orbital Mission
-
MRO & Manufacturing4 days agoBoeing and ORNL 3D Print Two-Ton Mold for NASA HiCAM
-
MRO & Manufacturing4 days agoST Engineering and Collins Aerospace Sign MRO Agreements
-
Business Aviation6 days agoTextron Aviation Delivers 500th Cessna Citation Latitude
-
Space & Satellites7 days agoStoke Space Raises $1B Series E to Scale Nova Rocket Program
