Auckland, New Zealand - Air New Zealand has placed a firm order for eight Boeing 787-10 with 12 options, the largest variant of the Dreamliner family.
The agreement is valued at $2.7 billion at list prices, but airlines usually get significant discounts on bulk orders.
Air New Zealand plans to fly its Boeing 787-10s between Auckland and New York.
The order agreement includes substitution rights granting a conversion from the 787-10 for the smaller 787-9, or a combination of the two variants.
The 787-10 has %15 more passengers and cargo capacity than the 787-9.
The airline's current wide-body fleet consists of nine Boeing 777-200ER, eight Boeing 777-300ER, and 13 Boeing 787-9. The company will take delivery of the last 787-9 from a previous order in the coming months.
The new Boeing 787-10s of the carrier will be powered by General Electric's GEnx-1B engines and replace the 777-200ERs in the fleet, which are 14 years old on average.
The last Boeing 777-200ER will be removed from the Air New Zealand's fleet by 2025.
The airline's existing Dreamliners are powered by the Trent 1000 engines of the British manufacturer Rolls-Royce. Last year, the 787-9s were grounded around the globe for checks due to an early corrosion on the engine blades.
Air New Zealand will take over the first Boeing 787-10 in 2022.
In July 2014, Air New Zealand was the first airline in the world to include the Boeing 787-9 in its fleet.