FRANKFURT (MarketWatch) -- Air Berlin Plc /quotes/comstock/11e!fab1 (DE:AB1 3.65, +0.01, +0.27%) , Germany's second biggest airline, said Tuesday it has agreed with Boeing Co. /quotes/comstock/13*!ba/quotes/nls/ba (BA 68.14, +0.92, +1.37%) to reduce the number of firm orders of 787 aircraft from 25 to 15, and to reduce the number of optional 787 aircraft from 10 to 5. The 10 aircraft order reduction has a current list price of about $1.7 billion. Air Berlin cited "a change in market conditions" as a reason for the decision. The agreement also provides that the delivery of 9 Boeing 737 aircraft will be rescheduled to 2015, the firm said. These aircraft were originally scheduled for delivery in 2010 or 2011. "For Air Berlin, the agreement means a significant reduction of its financial obligations due to lower and much more distributed investment profile," said Ulf Huettmeyer, Air Berlin's chief financial officer. Shares of Air Berlin dropped 0.7% in recent trading on Xetra.
