MEXICO CITY, June 7 (Reuters) - Mexico's military-run

airline Mexicana will pay $750 million for 20 Embraer ( ERJ )

jets, the government said on Friday, providing insight into the

significant discounts planemakers often give out to airlines.

Analysts had pegged the list price of the order around

$1.5 billion when the

deal was announced

earlier this week, with Santander analysts writing that

they believed a discount of around 40% had been given out.

Mexicana's order for 10 E190-E2 jets seating 108 passengers

and 10 E195-E2 aircraft with 132 seats from the Brazilian

planemaker is a major step for the state-run airline since it

has sputtered to get off the ground since launching last year.

For months, Mexicana had touted that it was in talks

with rival planemaker Boeing ( BA ) for aircraft.

Mexicana "put in a bid (with Boeing ( BA ))," Deputy

Transportation Minister Rogelio Jimenez Pons told journalists

earlier this week. "But this rectification is really opportune

(for Mexicana) - the market needs these flights, this type of

jet."

The state-run airline will become the first carrier to

operate one of Embraer's ( ERJ ) second-generation aircraft in the

country.