WELLINGTON, New Zealand – Air New Zealand is buying four Boeing 777-300 long-haul airplanes and has options on three more as it extends its fleet’s range and expands capacity, chief executive Rob Fyfe said Friday.

The first four airplanes, due for delivery by 2011, have a combined list price of $NZ1.1 billion ($844 million), but were bought at a discount, Fyfe said, without revealing details.

The purchases, along with eight Boeing (nyse: BA – news – people ) 787 Dreamliners the airline has on order, will extend the range, capacity and fuel efficiency of the company’s fleet, Fyfe said in a statement.

Air New Zealand has now committed more than NZ$2.6 billion ($2 billion) to long haul fleet investment.

“The purchase rights for the 777-300 ERs were obtained from Boeing in 2004, and the confidence we showed in the future of Air New Zealand when the aircraft purchasing market was at the bottom of the cycle three years ago has really paid off,” he said.

Air New Zealand is 76 percent owned by the New Zealand government after it was rescued from bankruptcy in 2001.

Fyfe said the airline will move to a full 777 and 787 twin-engine fleet for long haul flights around 2012, phasing out its Boeing 747 and 767 fleets as the new airplanes are introduced.

The 777-300ER can seat about 50 more passengers than the 313-seat 777-200ERs currently in the Air New Zealand fleet.

Air New Zealand said it planned to fund the announced purchase through a mixture of cash and debt.

At its interim result in February, the airline said it had completed the first stage of a three-year, NZ$2.6 billion ($2 billion) capital investment program with over NZ$1 billion ($767 million) still in the bank and a debt ratio of 46.7 percent.

Fyfe said the 787s and 777-300ER aircraft – with their ability to fly direct to regions like India, South America, Asia and deep into China and North America – will provide the carrier with a platform to realize its growth ambitions over the next decade.