Boeing Lands Another Big Order for Jets

Air India Ltd. said Tuesday that it would buy 50 Boeing Co. passenger jets valued at as much as $6.9 billion. It was the aircraft maker’s second major order in two days.

Air India said it would acquire 23 model 777s and 27 model 787s. The purchase requires the approval of India’s government, which owns the airline.

On Monday, Air Canada ordered 32 planes valued as much as $6.1 billion, including 14 of the 787s. Chicago-based Boeing is counting on the fuel-efficient Dreamliner, its first new line of jetliners in 15 years, to help regain the industry sales lead from Airbus within two to three years.

Airbus has yet to receive the green light from its board of directors to begin production of the A350, which would compete with Boeing’s 787, a jetliner line that is under development.

“The order flow is starting to go Boeing’s way,” said Myles Walton, an analyst at CIBC World Markets in New York. “The A350 isn’t getting the play Airbus was hoping for. The 787 is absolutely boxing them out.”

Air India, which has a mix of Airbus and Boeing planes, said the new jets would fill its fleet needs until 2012.

Shares of Boeing fell 58 cents to $59 on the New York Stock Exchange.

Capturing Air India’s bid helps Boeing catch up with Airbus in India, where regional carriers have chosen twice as many aircraft made by the Toulouse, France-based Airbus than by Boeing.

India’s airlines are buying and leasing planes as economic expansion in Asia’s fourth-biggest economy stokes demand for business and leisure travel.

“We have never seen interest like we have with the 787,” said Michael Bair, head of Boeing’s 787 program. “It’s really gratifying to see airlines from all over the world, with different business models, endorsing the plane.”

The twin-engine aircraft is designed to replace Boeing’s older 757 and 767 models. It is designed to carry as many as 289 passengers and to be 20% more fuel-efficient than existing planes. About 50% of the new plane by weight is to be made of carbon fiber composites, making it lighter, easier to repair and more corrosion-resistant.

Boeing has proposals pending with 27 customers for 449 Dreamliners and commitments for 217 planes from 18 customers, Bair said.

“We’re beginning to see some sizable orders from airlines,” said Paul Nisbet, an analyst at JSA Research in Newport, Rhode Island. “That will translate into increases in the bottom line.”

This month Korean Air said it would order as many as 20 787s in a deal worth as much as $2.6 billion. Also, analysts and published reports said Northwest Airlines Corp. was negotiating an order for a substantial number of planes.

All the airlines involved in the recent orders had been committed Airbus clients.

“It’s not just sheer volume in customers’ orders -- it’s penetration deep in the heart of Airbus territory,” said Richard Aboulafia, an aviation analyst for Teal Group in Fairfax, Va.