Boeing announces big Virgin Atlantic order

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Boeing Co. announced Tuesday that Virgin Atlantic ordered 15 of its 787 Dreamliners and said it is partnering with the London-based carrier to develop a new biofuel for jets as part of efforts to reduce carbon emissions.

Boeing Co. announced Tuesday that Virgin Atlantic ordered 15 of its 787 Dreamliners and said it is partnering with the London-based carrier to develop a new biofuel for jets as part of efforts to reduce carbon emissions.

The 787 order, which Boeing previously disclosed but did not identify as coming from Virgin, is worth $2.8 billion at list prices. It is the largest European order to date for the Dreamliner, which is due to enter service in 2008.

Virgin also took options for eight 787s and purchase rights for 20 more of the aircraft, which Boeing is touting for its increased fuel efficiency — a deal potentially worth $8 billion.

The 787-9 burns around 27 percent less fuel per passenger than the Airbus A340-300 aircraft it will replace beginning in 2011, according to Virgin.

Boeing executives and Virgin Atlantic Chairman Richard Branson announced the orders and the partnership at a news conference where they said they hope to launch a test flight of a biofuel-powered 747 in the next year.

Branson said he hopes the new fuel will reduce the overall pollution generated by the airline industry.

“We all have a responsibility ... to reduce the carbon footprint. Doing nothing should not be an option,” he said. “The environment has become the most important issue facing the world right now.”

Separately, Air Canada said it is increasing its Dreamliner order to 37 from 14, making it the largest North American customer for the plane. The revised agreement includes options for 23 more 787s. The new aircraft will replace its existing Airbus A340s and A330s and Boeing 767s.

Boeing’s announced orders Tuesday for its new carbon-composite 787 Dreamliner jet are worth more than $7 billion at list prices.

Boeing’s 787 — which is set for its first flight this summer and entry into service next year — is designed to save airlines money through its lower weight and more efficient engines. Boeing has already taken orders for more than 500 of the planes, making it the most successful launch in the company’s history.

The new plane has handed Boeing dominance in the lucrative market for larger, widebody jets, heavily outselling European rival Airbus.

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