Boeing lands orders from two airlines for its 787 jet

Virgin Atlantic Airways Ltd. and Air Canada delivered double victories Tuesday to Boeing Co., choosing the company’s 787 Dreamliner over the competing Airbus A350 model.

Also, Boeing said it was partnering with London-based Virgin Atlantic to develop a biofuel for commercial jets as part of an effort to cut carbon emissions.

Virgin Atlantic’s 15-plane order is worth $2.8 billion at list prices and is the largest European order to date for the aircraft due to enter service in 2008.

Virgin Atlantic also took options for eight 787s and purchase rights for 20 more of the aircraft, which Chicago-based Boeing is touting for its increased fuel efficiency -- a deal potentially worth $8 billion. The planes will be added to the airline’s fleet in 2011.

Air Canada, which is owned by Montreal-based ACE Aviation Holdings Inc., said it was increasing its Dreamliner order to 37 from 14, making it the largest North American customer for the plane. The new aircraft, which are scheduled for delivery in 2010, will replace the carrier’s Airbus A340s and A330s and Boeing 767s.

The 787 burns about 27% less fuel than many other aircraft, thanks to its partial use of composite materials instead of metal.