Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Finance

New Zealand to spend $1.6 billion for US maritime helicopters, Airbus jets

Published by Global Banking and Finance Review

Posted on August 21, 2025

Featured image for article about Finance

SYDNEY (Reuters) -New Zealand said on Thursday it would spend NZ$2.7 billion ($1.6 billion) to buy five MH-60R Seahawk helicopters and two Airbus A321XLR aircraft, the first major investment following a decision to replace the country's aging defence fleet.

NZ$2 billion will be used to buy the maritime helicopters, manufactured by Lockheed Martin's Sikorsky unit, and NZ$700 million for the A321XLRs, Defence Minister Judith Collins and Foreign Minister Winston Peters said in a joint statement.

Both investments are part of the planned commitments outlined in April in the government's Defence Capability Plan.

New Zealand in April pledged to boost its defence spending by NZ$9 billion over the next four years, and aim to nearly double spending to 2% as a share of GDP in the next eight years as part of the Defence Capability Plan.

"We will now move at pace to procure helicopters directly through the United States' Foreign Military Sales programme instead of going to a wider tender, with cabinet expected to consider the final business case next year," Collins said.

The two new Airbus aircraft, set to replace the Boeing 757 planes, will be acquired on a six-year lease-to-buy arrangement.

The New Zealand Defence Force's two 757s are more than 30 years old and their age has made them increasingly unreliable, breaking down several times and stranding the nation's leaders, forcing them to take commercial flights.

"This decision will ensure New Zealand has a critical combat capable, interoperable and dependable fleet," Collins said.

The government's investment decisions showed it was responding to "the sharply deteriorating security environment," Peters said.

"Global tensions are increasing rapidly, and we must invest in our national security to ensure our economic prosperity," he added.

An intelligence report released on Thursday said New Zealand was facing the toughest national security challenges of recent times with increasing threats of foreign interference and espionage, particularly from China.

($1 = 1.7170 New Zealand dollars)

(Reporting by Renju Jose in Sydney; Editing by Michael Perry)