Airbus CEO Noel Forgeard: Optimistic

The deal is worth about $12.5bn (�7.5bn), according to Airbus' assessment of future catalogue prices, and includes 21 of the new super-jumbo A380s.

The news is likely to safeguard some jobs at Rolls Royce, which has been awarded Airbus' �900m contract to supply engines for the 20 A340s that are also part of the deal.

The industry's crisis means the planes are likely to have been sold at a heavy discount from the catalogue prices being quoted.

Airbus has stolen the show at Paris, looking set to overtake Boeing for the first time in more than 25 years in the number of annual aircraft deliveries.

Signs of hope

The European aircraft company said it was on target to deliver 300 jets this year - far above its previous forecast of 175 - despite facing the industry's worst ever downturn.

"The market is better than we expected, and our market share has increased much more than we anticipated," said Airbus chief executive Noel Forgeard.

Emirates have ordered 21 new A380s

"We are realistic about the current economic environment, but we are also optimistic."

The Sars outbreak in Asia, the war in Iraq, and concerns over terrorism and slow economic growth have all depressed airline traffic, leading the major carriers to cut back on orders for new aircraft.

Boeing has notched up just 36 orders so far this year, and is predicting about 280 deliveries in total.

"Boeing's best assessment is that traffic comes back in 2003, the airlines repair their balance sheets and keep working on their productivity, and get back on track in 2004," Boeing chief executive Alan Mulally said.

Crisis

Emirates is thought to be the world's fastest growing major airline, and will use its new planes as part of its global expansion.

Were US firms asked to stay away?

It also placed an orders for 26 new Boeing planes, although this does not increase Boeing's orderbook since the planes were pre-ordered by lease companies.

Thai Airways, Malaysia's Airline System and Qatar Airways are among other firms expected to finalise deals in the coming weeks.

The Paris Airshow, the largest and oldest aerospace gathering in the world, is taking place against the backdrop of a crisis in aviation.

The industry has racked up losses of about $30bn over the past two years, and is expected to lose a further $10bn this year.

The political tension between the US and France has also come into play.

Industry insiders suggest that Washington put pressure on US companies not to attend because of France's opposition to the war in Iraq.