The deal, sealed at a ceremony in Belgium's Military College a few kilometres from NATO headquarters, was the biggest such joint venture ever launched in Europe's defence industry.

Klaus von Sperber, director of the Joint Organization for Armament Cooperation, OCCAR, signed as representative of the eight countries.

Belgian Defence Minister Andre Flahaut called it "a giant step for Europe, one that will eventually enhance its capacities to act, a step that will further solidify the common will of our states to strengthen our military means."

Germany ordered 73 of the planes, France 50, Spain 27, Britain 25, Turkey 10, Belgium seven, Portugal three and Luxembourg one.

The first flight of the A400M is slated for 2006, and the first delivery, to France, in 2008.

Turkey will be the second country to take delivery, after which production will run over 12 years, with the last delivery being to Belgium in 2020.

The contract had earlier been estimated by industry sources at 16 billion euros (US$14.4 billion), a figure that had appeared in earlier reports.

"This is the day we have all been waiting for," said Alberto Fernandez, chief executive officer of Airbus Military, who signed for the manufacturer.

"We have watched the steady progress towards the final goal with satisfaction and all concerned should feel a sense of personal pride in this great achievement."

The A400M, he said, "marks the beginning of a new era in military air transport capability."

The new craft, with four turbo-prop engines, is destined to replace aging military transport planes across Europe, including the US Hercules C-130 and the Franco-German Transall C-160.

The final assembly line for the plane will be at the Spanish division of EADS, Airbus's largest shareholder, in Seville.

In all, the contract is expected to create some 10,000 jobs.

(China Daily Decembr 20, 2001)