Boeing Locks Up New Orders

The company also unveils an extended-range version of the 737 passenger jet.
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Boeing

(BA) - Get Report

has unveiled a larger, extended-range version of its single-aisle 737 passenger jet after lining up Indonesia's

Lion Air

as the plane's initial customer.

In a deal worth $3.9 billion at list prices, Lion Air has placed firm orders for 30 of the 737-900ER aircraft, with purchase rights for 30 additional airplanes, Boeing said late Monday.

The announcement provides more details about the intentions of Indonesia's first low-cost carrier. In May Boeing confirmed Lion Air had a preliminary agreement to purchase as many as 60 next-generation 737s. Rumors about the deal had lifted Boeing shares in March.

Boeing has notched a string of commercial airplane orders this year and hopes to regain market leadership from rival

Airbus

, a joint venture of European Aeronautic Defence & Space Co. and BAE Systems.

Lion Air plans to take delivery of the first 737-900ER in the first half of 2007. The plane is the same size as Boeing's existing 737-900, but modifications allow it to carry 26 more passengers, raising the maximum capacity to 215 from 189. It also has an extended range of 3,200 nautical miles.

Also Monday, Boeing said it racked up firm orders from TAAG Angola Airlines for six planes with list prices totaling $649.6 million.

The airline wants two 777-200ER jets and four 737-700QC (Quick Change) jets. TAAG will take delivery of the first 777 and the first 737 next July, with the rest of the planes set for delivery by the end of 2006.

The planes will replace TAAG's current fleet of two 747-300s and five 737-200s. Boeing said the older planes have significantly higher fuel and maintenance costs than their replacements.

Boeing shares rose 22 cents to $64.96.