Air New Zealand will lease five of its 14 new Airbus A320-series aircraft from Los Angeles leasing company Air Lease Corporation.
The first aircraft, an A321neo, is scheduled for delivery in August 2017 followed by an A320neo in September 2017.
The remaining three leased aircraft will be delivered in 2018.
Last month Air New Zealand announced it had ordered 14 new A320s, worth US$1.8 billion [NZ$2.1b] at list prices, to replace its current fleet of 13 A320s which operate the majority of the airline's Tasman and Pacific Island services.
The order is for a combination of 13 A320neo and A321neo aircraft. The exact mix is yet to be confirmed but will include at least three A321neo aircraft.
An additional current generation A320 for its domestic fleet will be delivered early next year.
The larger A321neos will have 38 more seats than the airline's existing A320s.
Equipped with new generation engines and ''sharklet'' wing tips the planes are expected to deliver fuel savings of up to 15 per cent.
Christopher Luxon said this would save the national carrier $1.9 million on fuel a year.
Air Lease Corporation executive vice president Grant Levy said it was pleased to grow its relationship with Air New Zealand.
Airbus has 2700 orders for A320neo models from 50 airlines.
- Fairfax Media