The deal includes a long-term TotalCare agreement, which will see Rolls-Royce, which has its civil aerospace division in Sinfin, provide maintenance on the engines throughout their service life.

The company will start delivering the order in 2011.

The deal will see staff at Derby make engines for six aircraft ordered directly by Virgin, and four which the airline will lease from AerCap.

The order further strengthens a 12-year relationship between Rolls-Royce and Virgin.

In previous years, the airline has ordered Trent 900 engines to power its fleet of A380 aircraft.

Rolls-Royce will also eventually supply Trent 1000 engines for 43 Boeing 787 Dreamliner aircraft, which Virgin has ordered.
The Dreamliner is still being developed by Boeing and it is hoped that it will have its first test flight before Christmas.

Mark King, president of Rolls-Royce's civil aerospace division, said: "This latest order continues a long and successful relationship and we are pleased that Virgin Atlantic is again turning to Trent engine technology.

"We remain committed to delivering competitive advantage and fuel-efficient power to support their environmental, operational and economic requirements."

Steve Ridgway, Virgin Atlantic's chief executive, said the timing of the order was to help firm's like Rolls-Royce get through the global economic downturn.

He said: "Our engine selection was based on both cost and environmental benefits and the Trent 700 was our choice on both grounds.

"Our engine order also signals our commitment to flying a modern fleet with the most fuel-efficient technology available.

"Now is the right time for leading businesses to be placing orders like this so that companies, vital to the British economy, can protect jobs, grow and thrive in the future."

Last year, Sir Richard Branson praised Rolls-Royce for its efforts to produce greener engines after his airline placed its £1.3bn order for Trent 1000 engines.

Sir Richard, who is Virgin Atlantic's president, said that the airline had decided on the Trent 1000 because of its green credentials.

And when he came to Derby in November, 2007, to open the University of Derby's £20m art, design and technology building in Markeaton Street, he hailed the city as the centre of British engineering.

His airline has since formed an environmental partnership with Rolls-Royce's civil aerospace division, which sees both companies work together to lower the amount of engine fuel burn and emissions.