TAM Orders Four 777s... Instead Of A340s

In what amounts to a major coup for Boeing, Brazil's TAM Airlines announced late Tuesday it has firmed up plans to acquire four Boeing 777-300ER airliners, with purchase options on four more airframes.

The Seattle Times reports the deal is worth approximately $1 billion at list price... but the significance of the order isn't about money. Rather, it's the fact a loyal Airbus customer has defected to the American planemaker for its long-haul needs, foregoing Airbus's four-engine A340.

TAM -- which before now has never ordered from Boeing -- is also Airbus's largest client in Latin America.

"The Boeing Company is pleased to be working with TAM, Brazil's largest airline, which flies both domestic and international routes," the company said in a news release. "Successful conclusion of on-going negotiations would result in the introduction of Boeing 777-300ER jetliners into the TAM fleet -- currently comprised of only Airbus A319/320s and A330s -- by the middle of 2008.

"TAM Airlines would become the first Latin American carrier to operate the popular 777-300ER," the planemaker added.

TAM's decision comes days after Emirates announced it will cancel its orders for 10 A340s. The carrier has said it plans to replace those orders with, you guessed it, 777s.

The 777 has soundly trounced the A340 in the orders column the past year, as carriers seeking a long-haul aircraft have opted for the more fuel-efficient plane.

"As one of the newest 777 jetliners in service, the 777-300ER has consistently demonstrated best-in-class reliability and unmatched fuel efficiency," said John Wojick, vice president, sales, Latin America and the Caribbean. "The performance by the 777-300ER will enable TAM to successfully serve passengers on long range routes at lower costs."

FMI: www.boeing.com, www.tamairlines.com