Air New Zealand has announced a new fuel-efficient engine to power its new aircraft fleet, which could mean cheaper airfares.

13 new A320 and 321 aircrafts will join the fleet over the next decade, starting in 2017.

The PW 1100 G is a geared turbo fan engine, which promises to use between 15 and 20 percent less fuel than current technology.

Air New Zealand says it will help with the company's goal to reduce its environmental foot print.

But it also means the company can bring in more seats at competitive prices.

Meanwhile, a Christchurch company has been successful in securing the task of repairing Air New Zealand's engines.

Graham Jack, the General manager of the Christchurch Engine Centre says it'll mean the creation of more jobs.

"We don't expect the gear to come in for its first overhaul until 2024, but this will be part of the network ready on day one and it is the first engine that are announced so that's very exciting."