* Germania deal could be worth over $2.5 bln at list prices
* Virgin Atlantic seen ordering A350s, cancelling A380s
* Boeing expected to relaunch smallest version of 737 MAX (Adds sources in paragraph 14, Boeing plans in paragraph 17)
By Tim Hepher
FARNBOROUGH, England, July 10 (Reuters) - German airline Germania is close to placing an order with European planemaker Airbus for around 25 A320-family jets, two industry sources said on Sunday, as aviation chiefs gathered for an industry summit clouded by economic worries.
The privately-held German carrier operates a mixed fleet of Airbus and Boeing jets but has said it aims to harmonise its fleet by switching to all-Airbus aircraft when it takes older Boeing 737-700s out of service.
The potential order, which could be worth over $2.5 billion at list prices, will disappoint Boeing which tried to wrestle back its former customer on the eve of Britain's Farnborough Airshow, the sources said, asking not to be named.
Germania officials could not immediately be reached for comment.
An Airbus spokesman said, "We do not comment on confidential talks which may or may not be happening with our customers."
Germania currently operates a medium-haul fleet of 10 Boeing 737-700s, as well as eight Airbus A319s and four A321s.
Swiss affiliate Germania operates three Airbus jets, according to latest statistics from the planemaker.
The airline first ordered Airbus jets in 2010, having previously operated mainly Boeing airplanes.
Chief executive Karsten Balke told Reuters last year it still had purchase rights for further Airbus aircraft and would use them "when we get the right price".
Berlin-based Germania focuses on Europe, North Africa and the Middle East and recently announced a co-operation with Spanish carrier Air Europa.
If confirmed, the order could be announced at the upcoming July 11-17 Farnborough Airshow, the sources said.
However, the showcase for order announcements, which alternates each year with the Paris Airshow, is expected to be quieter this year as airlines await direction from a faltering economy after several years of strong demand.
Among other potential deals, Airbus was said on the eve of the show to be close to securing an order worth some $3 billion for 8-10 A350 jets from Virgin Atlantic.
But the same airline looks set to cancel a long-standing order for six Airbus A380 superjumbos, industry sources said.
Boeing is expected to firm up at least part of a deal for up to 20 747-8 freighters from Russia's Volga Dnepr, boosting its declining jumbo jet programme, and could announce a new Asian customer for its 737 MAX 200 jet aimed at low-cost carriers.