Virgin orders Boeing jets, seeks to reduce carbon emissions

Dual high flights were marked for Boeing on Tuesday as Virgin Atlantic and Air Canada chose the company's 787 Dreamliner over the competing Airbus A350 model. Virgin Atlantic Airways' owner, Richard Branson, said his airline will try to cut down on carbon emissions, and buy at least 15 Boeing 787 planes as part of a new environmental partnership with the U.S. aircraft manufacturer.

Along came the announcement of Boeing’s partnership with London-based Virgin Atlantic to develop a biofuel for commercial jets.

The order, worth $2.8 billion, is the largest European order to date for the jet. Separately, Air Canada said, it will raise its order of 14 to 37, making it the largest North American customer for the plane.

787, according to Boeing, is to enter service in 2009. More than half of it is made from lightweight composite materials, dropping the amount of fuel that burns per passenger. But Virgin Atlantic has yet to choose between Rolls-Royce and General Electric engines for the aircraft and analysts say the fuel-efficiency claims are still waiting to be verified.

"The 787 Dreamliner symbolizes the environmentally kinder aircraft of the future - cleaner, quieter and truly the best experience in the air," Branson, said at a conference in Chicago.

Meanwhile, Virgin Atlantic and Boeing also assured to carry on their attempts to save energy by towing aircraft to runways. Virgin Atlantic said tests at its bases, Heathrow and Gatwick airports near London, "have provided positive results."

"We look forward to finding and testing alternative fuels and developing and implementing solutions that will reduce emissions both in the air and on the ground," said Boeing CEO Jim McNerney. "This is important work with high objectives."

Branson and Al Gore, the former U.S. vice president, had earlier announced a prize of $25 million to any modernizer who would successfully formulate an effective way of removing greenhouse gases from the atmosphere. But since Virgin Atlantic and other airlines contribute to carbon dioxide emissions, Branson was accused of hypocrisy in announcing the contest at that time.

Boeing shares went up 3 cents to close at $93.67 Tuesday after reaching their latest all-time high of $94.96 earlier in the session.