"In the next few years, we will increase investment as well as teach Chinese engineers and pilots with updated knowledge and technology," said Guy McLeod, acting president of Airbus China.

"China has the biggest potential airliner market in the world ...," he said.

"With China's entry into World Trade Organization and the 2008 Olympics approaching, we believe the connections between China and Airbus will be further enhanced," he said.

The Wall Street Journal reported last week that Airbus was in talks with China for the sale of between 30 and 50 A320 airliners, worth up to US$2.7 billion.

It quoted Airbus commercial director John Leahy as saying that discussions on the single-aisle aircraft could be concluded before the end of the year.

Experts estimate that China will need 1,600 new planes, costing some US$150 billion, in the next 20 years.

China already has over 100 Airbus planes, accounting for 24 percent of its civilian aircrafts, it said.

McLeod said: "Our goal is not only to sell planes to China, but also to strengthen industrial cooperation."

"Airbus will strengthen its comprehensive cooperation with China in the near future, including technology transformation and personnel training," he said.

China had confirmed plans to buy more than 30 Boeing planes earlier this month, but details of the still needed to be hammered out with the US aircraft maker.

Airbus has spent some US$80 million in setting up a training and support center in Beijing, the largest and the most advanced one ever built in China.

Airbus has also signed a deal with China on co-producing wing parts for A320 planes, it said.

(China Daily 08/28/2001)