Air New Zealand's first new-generation ATR 72-600 aircraft has been handed over in Toulouse, France.
The aircraft is the first of its kind for Air New Zealand which has a total of seven on order and options to purchase a further five for a total list price of $US270 million.
Air New Zealand chief executive Rob Fyfe says the aircraft hand over is a significant milestone in the airline's commitment to growing the key domestic sector.
The airline says the order will put two million additional regional seats into the market.