Air Europa signs for 18 737s

and Spanish airline

have finalised an agreement for the acquisition of 18 Boeing Next-Generation 737-800s.

Air Europa first announced its intention to order the airplanes, plus purchase rights for an additional 16, last month at the Paris Air Show.

The order is valued at approximately $1.2 billion at list prices. Deliveries begin in 2007, with three new airplanes to be delivered annually.

Air Europa, headquartered in Palma de Mallorca, Spain, will use the additional 737s for renewal and growth of its short-to-medium-range fleet. The carrier currently operates 27 737-800s, two 737-400s and five 767-300s.

Boeing claims the Next-Generation 737 flies 305 nautical miles further, and has operating costs that are four to 10 percent lower, than its nearest competitor.