The world's No 1 commercial aircraft manufacturer, Airbus, plans to secure the first Chinese customer for its huge A380 jet before the end of the year.

Laurence Barron, president of Airbus China, revealed that the company was in talks with Chinese airlines, which have keen interest in the 555-seat plane - which will become the largest passenger aircraft in the world.

"One of the three airlines, China Southern Airlines, China Eastern Airlines and Air China, which have already established strategic partnerships with Airbus, is likely to become our first Chinese customer for the A380," he said.

But Hainan Airlines is also a possibility, as there are strong links between it and Airbus.

"We hope to achieve five to 10 orders before the end of this year and deliver one or two before 2008," Barron said.

The 2008 Olympics in Beijing and the 2010 World Expo in Shanghai will stimulate the development of China's airline industry.

"We believe that the A380 will be an ideal vehicle to transport tens of thousands of athletes, sports fans, businessmen and tourists to China," Barron said.

Moreover, China's airline industry will grow rapidly with the nation's fast economic growth, and the A380 will be the best choice for trunk routes between the hubs of Beijing, Shanghai, Guangzhou and other major cities, as well on international links, he added.

The final assembly of the first A380 started on May 7 and the first plane is scheduled to be in the air in 2006. More than 60 airports will be accommodating the A380 before 2010. Many are already able to handle the jet, but others are making modifications.

Barron says he is optimistic that Airbus' global success will be mirrored in China, which is expected to become the second-largest airline market in the next 20 years.

Airbus received 36 new orders and completed 36 deliveries in China last year. It received 44 new orders and completed more than 20 deliveries during the first half of this year.

"There is no doubt that the Airbus share of Chinese airlines' fleets can be expanded from today's 30 per cent to 50 per cent," Barron said.

A plan by China to build its own large aircraft will not have a big impact on Airbus' market expansion scheme in the country, he said.

"If a local jet is built, it will not be completed until 2018."

Airbus will achieve its market expansion goal before 2012.

Its business in China has been expanding steadily since it entered the country in 1985. The Airbus fleet in service in the Chinese mainland, Hong Kong and Macao has grown to around 220 today from 29 in 1995.

"Airbus is not only selling aircraft in China, but is also committed to the long-term development of China's aviation industry," Barron said.

On June 11, Airbus signed an agreement with China Aviation Industry Corp I (AVIC I) to subcontract projects worth US$100 million to Chinese manufacturers.

Production of the upper and lateral panels of the A380's nose landing gear bay was part of the agreement.

The project will be carried out via Airbus' first-tier supplier Latecoere, a French company.

Airbus will also allocate A330/A340 forward cargo door projects, via Eurocopter, to Shenyang Aircraft Corp, which is affiliated with AVIC I.

"The deal is part of Airbus' plan to increase its procurement from China," Barron said.

The value of procurement from China will reach US$60 million annually by 2007 from the current level of about US$10 million.

(China Daily June 21, 2004)