UPDATE 1-Air New Zealand to replace Boeings with Airbus A320s

* Airbus displaces Boeing single-aisle fleet

* IATA still sees $11 bln industry losses

(Adds engine supplier, IATA comments, background)

WELLINGTON, Nov 3 (Reuters) - Air New Zealand will buy 14 new Airbus (EAD.PA) planes at a cost of around $1 billion to replace its domestic fleet of Boeings (BA.N), the national carrier said on Tuesday.

The move follows what European planemaker Airbus called an "intensive and robust" face-off between the world's only makers of large passenger aircraft as airlines remain mired in recession.

Air New Zealand said it would buy 14 Airbus A320 single-aisle jets to replace its current fleet of 15 Boeing 737-300s. Both models are used for short to medium routes.

The planes are worth $1.08 billion at list prices.

In France, Airbus said the planes would be powered by engines supplied by International Aero Engines, a consortium led by Rolls-Royce (RR.L) and Pratt & Whitney (UTX.N) and also grouping Germany's MTU (MTXGn.DE) as well as a trio of Japanese heavy engineering firms (7011.T)(7012.T)(7013.T).

IAE competes with CFM, a joint venture between Safran (SAF.PA) and General Electric (GE.N), for A320 engine deals which are negotiated separately with airlines.