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09 July 07

Air Berlin Strikes £2bn deal with Boeing

Air Berlin has struck a $4 billion (£2 billion) deal for 25 Boeing 787 Dreamliners.

The order is the largest placed by any European carrier and underlines the airline's ambitions to enter the budget long-haul sector. Air Berlin signalled this ambition a few months ago with its purchase of German long-haul charter carrier LTU. The latest announcement came just hours before the new aircraft was unveiled at Boeing's Seattle plant.

Joachim Hunold, Air Berlin's chief executive, says: "The aircraft will deliver the optimum combination of fuel efficiency, environmental performance and passenger comfort.

"These factors are essential for us to successfully grow our business and deliver a superior product for customers."

On top of the 25 orders, Air Berlin has secured 10 options and 15 purchase rights for additional 787s.

It did not announce an engine supplier for its 787s.

A Kuwaiti lease company also announced the purchase of 10 Dreamliners on Saturday, bringing the total number of the new Boeing sold worldwide to 677.

Boeing says the first test flight will take place in August or September.

Japan's All Nippon Airways will be the first airline to put the Dreamliner into service next year.

Elsewhere, a report in The Observer claimed that Virgin Atlantic is to unveil an order for a further eight Dreamliners.

It was also announced this weekend that Rolls Royce has secured a $1.3bn (£646m) engine deal for the 787 Dreamliner from US leasing company IL

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