British Airways (BA) is adding to its fleet of long-haul aircraft - buying four Boeing 777-200 aircraft to be delivered in 2009.
BA plans to expand its long-haul fleet further
It also has the option to buy a further four planes - which each have a $201m list price - for the following year.
BA invited both Airbus and Boeing to bid for contracts but decided it would be easier to integrate the Boeing jets into its fleet.
Last year the UK airline said it was looking to buy at least 34 new planes.
At the same time it said it first had to cut its £2.1bn pension deficit before it started ordering the new aircraft.
Negotiations are continuing to decide whether Rolls-Royce or General Electric will supply the engines for the new planes.
The decision not to buy Airbus A330s is a blow to the European plane maker which has faced major problems with its new A380 superjumbo.
However, BA said it was confident that both Boeing and Airbus would compete for future orders "as we move towards our major long-haul fleet renewal and expansion order later this year".
Last month, BA published a final version last month of its plan to narrow the pension deficit.
Negotiators for the four unions at BA agreed to consult with their members over the plan, which will mean that they either work for longer or pay higher pension contributions, for service after April this year.
In return the company pledged to inject up to £950m into the fund in the next three years, and pay a further £280m in each of the next 10 years.
Earlier this month the trustees of the BA pension scheme gave their formal agreement to the deal.
The reforms have been recommended to staff by the negotiators for three unions - Balpa, T&G and Amicus. However, members of the GMB trade union have voted to reject the plan.