Boeing sees a big future for medium-sized jets

Continental chief executive Gordon Bethune said the $1.3bn order for 10 planes makes it "an important part of our international growth strategy".

The 7E7, which will fly into business in 2008, is central to Boeing's aim to beat its European competitor Airbus.

Boeing continues to enjoy a dominance in the US, though in Europe some carriers favour Airbus instead.

Last week, Airbus announced the first sale of its A350 aircraft which will be launched as a rival to the Boeing 7E7, also known as the Dreamliner.

Both the 7E7 and the A350 are being designed to be as fuel-efficient as possible in the 200- to 300-seat sector, and each will be available in both short and long range versions.

Airbus is to sell 10 of its forthcoming A350s to Spanish carrier Air Europe, which has the option to buy two more in a deal that could be worth more than $1.8bn.