Air New Zealand Orders Boeing's 7E7

Air New Zealand Ltd. will acquire eight Boeing Co. 777-200 airplanes and two of Boeing's new 7E7 jets in a deal worth $850 million.

The deal would mark the second order for Boeing's new 7E7 airplane, which is scheduled to enter service in 2008.

Boeing officially launched the mid-size airplane with a 50-plane order from Air Nippon Airways Co. in April and has said that it was in talks with many airlines for deals involving hundreds of the airplanes.

Boeing spokeswoman Yvonne Leach said the company was still working out the details of the agreement with Air New Zealand.

Boeing shares rose $87 cents to 46.75 on the NYSE.