Varig Hands Boeing $2 Billion Jet Order

Varig, the biggest airline in Brazil, said it plans to buy between 32 and 40 new jets from Boeing Co. in a transaction that could be worth about $2 billion.

Viacao Aerea Rio-Grandense SA said plans to buy the new 737-800 and 737-900 series of Boeing’s short-haul jetliners comes as it experiences better-than-expected growth in passengers.

The mix and number of planes to be bought from the world’s largest aircraft manufacturer still hasn’t been decided, said Lucio Ricardo Marques da Silva, a Varig spokesman. Financing for the purchase also needs to be completed, he said.

The sale could help counter recent market share gains by rival Airbus Industrie in Latin America, a region long dominated by Boeing. In March, Airbus won a $3.5 billion order from airlines in Brazil, Chile and Central America.

The new jets, which are faster, more efficient, fly longer distances and hold more passengers, would replace 18 Boeing 737-300s that Varig flies.