At a news conference to mark 30 years of Boeing in China, Alan R. Mulally, president and chief executive of Boeing Commercial Airplanes, said that feedback from airlines around the world showed that they thought the new model would result in greater efficiency.

He said China's major airlines will also be involved in discussions about the new model.

Mulally said a major growth sector for the industry would be smaller aircraft for direct flights.

Direct flights can save "both money and energy," Mulally said.

But Airbus, Boeing's archrival, insisted that large aircraft, such as the 555-seat A380 plane that the European firm is building, would gain greater popularity in the market.

Mulally was diplomatic when asked about recent reports that China's largest airline, China Southern Airlines, is expected to order 20 new-generation Boeing 737 planes and two Boeing 747 cargo planes to reinforce its fleet.

"It's our policy to allow our customers to announce such deals first and we then confirm," Mulally said.

But he added: "China Southern Airlines is a great airline, and we love to work with them."

Mulally introduced David Wang, the newly appointed president of Boeing China, to the local media at yesterday's press conference.

Wang was president of the General Electric Co in China from 1997 to 2001. He has been described as very sophisticated in promoting relations with governments.

Though he has only been working at Boeing for less than two weeks, Wang said he had a clear idea about Boeing's future co-operation with China's aviation industry.

"My job is to help Boeing better integrate with the local aviation industry. My company here must be a Chinese Boeing company," he said.

Also at the press conference as a special guest was Gary Locke, governor of Washington State in the northwestern United States and the first Chinese-American governor in US history.

He said he is happy to have seen trade and co-operation between China and the United States increase steadily.

(China Daily December 4, 2002)