An Airbus China spokesman said Sunday that Airbus has signed a deal with China Aviation Industry Corp. I (AVIC I) on subcontracting projects worth US$100 million.

"Production of the upper and lateral panels of the A380 nose landing gear bay was part of the agreement," the spokesman said. "The project will be carried out via Airbus first-tier supplier Latecoere, a French company."

Airbus will also allocate forward cargo door projects for A330/A340 aircraft via Eurocopter, another first-tier supplier, to Shenyang Aircraft Corporation, which is affiliated with AVIC I, the spokesman said.

Laurence Barron, president of Airbus China, said the deal is part of Airbus' plan to increase procurement from China to US$60 million annually by 2007. The current level is about US$10 million, he said.

The A380 program has maintained momentum, with final assembly of the aircraft having started on May 7, Barron said.

With the first A380 scheduled to enter service in 2006, operational preparation is also gaining impetus, he said.

More than 60 airports will see the A380 before 2010. Many are already able to handle the A380, while others are preparing to accept the aircraft when they enter service.

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

"We believe that the 555-seat A380 will be an ideal vehicle to transport tens of thousands of athletes, sports fans, business people and tourists to China," he said.

Airbus's business in China has been steadily expanding since it first entered the country in 1985.

The Airbus fleet in service on the Chinese mainland and in Hong Kong and Macao has grown to more than 220 today from 29 in 1995.

On Friday, China Aviation Supplies Import & Export Group signed an agreement with Airbus for the purchase of 20 A330-300 aircraft. They are scheduled for delivery from the first quarter of 2006.

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

Industrial cooperation between Airbus and the Chinese aviation industry began in 1985, when the General Administration of Civil Aviation of Shanghai, now China Eastern Airlines, became the first carrier in China to operate the Airbus aircraft.

Contracts for Chinese companies to build sections of Airbus aircraft followed, as did further orders from Chinese airlines.

Aerospatiale, which is now Airbus France, signed the first product subcontracting agreement in 1985 with Xi'an Aircraft Company for the manufacturing and assembly of access doors for Airbus A300/A310 wide-body aircraft.

Since then, the total value of projects subcontracted by Airbus to Chinese manufacturers has topped US$500 million.

In 2003, the Chinese manufacturers delivered more than US$14.5 million worth of aircraft components to Airbus.

AVIC I Senior Vice President Gu Huizhong said: "We appreciate Airbus' efforts to carry out effective cooperation with mutual benefits for Chinese manufacturers."

(China Daily June 14, 2004)