Farnborough '98 continues to bring good news to Boeing. The Seattle-based aerospace manufacturer yesterday closed a sale with Varig for 39 transports worth $2.7 billion if all options are exercised.

Elsewhere the Singapore-based leasing company S.A.L.E. said it placed its first two 777s with prestigious Dubai-based Emirates. They were from a 1995 order but were upgraded to stretched -300 models. They will be the first 777-300s in the Middle East, Boeing said.

"We have not left the field of battle," Boeing president and chief operating officer Harry Stonecipher said as he announced the Varig deal here Tuesday. Airbus recently has made inroads in Boeing-dominated Latin America, considered a critical airliner growth market. Varig is a major player in the region, representing 33% of the business in Brazil. Indeed, over the past four months, the Rio de Janeiro-based airline has experienced 25% traffic growth, in terms of revenues passenger miles, compared to the same period last year, according to Fernando Pinto, airline president and chief executive officer.

Moreover, the purchase by Varig places the first four 777s in Latin America. Also included in the deal were six extended range 767-300ERs and a total of 14 next-generation 737-800s and 737-700s. Varig placed options for four more 777s and 11 737-700s. All the 777s are -200 increased gross weight versions.

Pinto said his airline will use the 777s to replace MD-11s on routes to Europe and the U.S. Some of these now are registering load factors of 85%, he said. Despite experiencing 11% average annual traffic growth over the past three years, Pinto noted the orders were "conservative," based on three percent annual average traffic growth.

All of the new aircraft will have GE engines.

The 777-300s leased by S.A.L.E. to Emirates will take the carrier's fleet to 11, according to Sheik Ahmed bin Saeed Al Maktoum, chairman.

By Paul Proctor