VIRGIN ATLANTIC airline has dealt a sharp blow to Airbus by placing a $2.8 billion (£1.4bn) order for 15 planes from rival manufacturer Boeing.

Opting for Boeing's 787 Dreamline model increases the likelihood Virgin will be the first airline to offer non-stop flights from the UK to Australia.

Quantas last year considered introducing direct flights using 777s but ditched the idea after calculating the extra fuel required would make it too expensive.

But the 787s will be lighter because as much as 50% of the structure - including wings and fuselage - will be made from carbon fibre-reinforced plastic rather than heavier aluminium plates. This makes the airplanes 27% more fuel efficient than the Airbus A340s they replace.

Virgin's order also includes options for an additional eight aircraft and purchase rights for a further 20, making it Boeing's biggest order from a European airline.

Nick Cunningham, airline analyst at Panmure Gordon, said that the deal with Boeing came as "a slight surprise given that Virgin already owns A340s - but the 787 has been a fantastic success."

Virgin's purchase brings the total number of orders for the 787 since it was launched in April 2004 to 544. This makes it the most successful aircraft launch ever.

The 787-9 model Virgin has opted for seats between 250 and 290 passengers and can fly routes as far as 8000 to 8500 nautical miles.

Virgin plans super-longhaul flights between London and Perth initially, then Sydney and Melbourne too. Direct flights to Hawaii are also planned.

The deal between Virgin and Boeing was billed as an "environmental partnership". Working in conjunction with GE Aviation and Virgin Fuels, the pair will work on developing biofuels for use by commercial jet engines.

The team have planned a demonstration of biofuels using a Virgin Atlantic Boeing 747 next year.

Boeing and Virgin are also exploring ways of reducing fuel consumption and carbon emissions on the ground.

Trials are under way at Gatwick, Heathrow and San Francisco airports to tow airplanes to the runway rather than have them taxi there.

This is intended to cut emissions by 50%. So far, results have been "positive" and there are plans to extend the scheme at other airports, according to Boeing.

Speaking in Chicago on Tuesday, Richard Branson said: "We all have the responsibility to reduce our carbon footprint and doing nothing should not be an option for any airline."

Branson was in the city home of Boeing, to celebrate the reintroduction of a flight from London to Chicago after a five-year lapse.

A Populus survey for The Times newspaper last week showed that almost three quarters of the UK public think the airline industry is not doing enough to combat global warming.

One third of people believe it is the airlines who have the greatest responsibility to act, ahead of the government, manufacturers and passengers.

According to the European Environment Agency, the aviation industry accounts for 1.6% of global greenhouse gas emissions. That figure is forecast to rise by 3% annually between now and 2015.

Airbus claims that the A380 will be even more fuel efficent. But the aircraft will not be ready until 2013.

The 787 is scheduled to hit the market in 2008 and will start replacing Virgin's current fleet from 2011.

Branson said: The 787 is available and it performs very well. If Airbus comes with a plane that offers much greater fuel efficiency in the future, then we'd be happy to look at that plane as well."

Branson has an existing order for six A380s which he said he remains committed to.

Virgin Atlantic is considered by passengers to be the most environmentally friendly airline. By contrast, only 6% of those surveyed in the Populus poll thought Ryanair leads the industry in tackling climate change. Ryanair's chief executive Michael O'Leary's claims that the airline is "the greenest in Europe".

Boeing followed up news of the deal with Virgin by announcing Air Canada had placed an order to buy 23 Dreamliners.

Boeing currently ranks as the world's second largest maker of commercial aircraft. But it is expected to regain the number one position from Airbus in 2008.

Airbus predicts that it will provide customers with between 440 and 450 aircraft this year, up from 434 in 2006.

Boeing expects to deliver between 440 and 445 planes in 2007, up from 398 last year.

But if the rivalry between manufacturers is cut-throat, so too is it between airlines.

Virgin's UK rival BA admitted last week that it cut a scene featuring Richard Branson from the most recent James Bond film, Casino Royale, when it was shown as the in-flight movie.

A spokesman for Virgin Atlantic said it was a shame BA felt the cut was necessary and said Virgin made no changes to Die Another Day, an earlier Bond film that featured British Airways.