Boeing finalizes 787 order from Chile's LAN Airlines

SEATTLE -- Boeing Co. said Monday it had finalized an order from Chile's LAN Airlines for 26 long-haul 787 passenger jets and two 777 freighters.

The Dreamliner order, a mix of 787-8s and 787-9s, is valued at $4.5 billion at list prices, while the 777 order is worth $500 million at catalog prices, Chicago-based Boeing said. Airlines typically negotiate steep discounts.

LAN announced the 787 order in July, saying it will add the planes to its fleet between 2011 and 2016. At the airline's request, Boeing had previously attributed the 777 order to an unidentified customer.

Additionally, the Santiago-based carrier has agreed to lease six 787s from International Lease Finance Corp. and two 777 freighters from GE Commercial Aviation Services.

LAN's order boosts the order tally for Boeing's new Dreamliner to 736. The plane, which will be the first large commercial jet made mostly of carbon fiber-reinforced composites rather than aluminum, is scheduled to enter service in late 2008.

Boeing has received 82 orders for its 777 freighter, which the plane maker said is scheduled to enter service early in the fourth quarter of 2008.