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Airbus Plans Expansion In China

Company will expand training and parts centers in coming years.

HAMBURG, Germany (AP) - Airbus, which has been struggling with costly delays to its A380 jet program and management upheaval, said Thursday that it plans to expand its training and parts centers in China in the coming years, part of increased demand for the group's airliners.

''We'll add a third flight training simulator by the end of next year and then a fourth simulator,'' said Laurence Barron, the president of the planemaker's Chinese operations. ''We need to add the simulators to train more pilots. We'll also expand two parts centers in the next couple of years to correspond with the growth in the business.''

Airbus, which is majority owned by European Aeronautic Defense and Space Co., had no immediate comment Thursday after an executive from co-parent BAE Systems PLC suggested there could be further delays to Airbus' double-decker A380 airplane program.

''I'd be surprised if there weren't (more delays),'' Turner said Wednesday. BAE, which owns 20 percent of Airbus and is planning to sell that stake to EADS, may consider legal action, he said.

Airbus announced this summer that the A380 program faced a second production delay of six months, sending EADS shares tumbling and leading to the departure of top executives at both EADS and Airbus.

Turner also said he believes there are risks over Airbus' A400M military transport plane program. EADS and Airbus officials have repeatedly denied newspaper reports that the program also faces long delays.

Airbus has been dogged by problems with its flagship A380 superjumbo and its A350 mid-sized jet programs while facing a revitalized challenge from Boeing's 787 Dreamliner program.

But while Boeing has been traditionally strong in Asia, Barron said sales of Airbus aircraft to China climbed to 219 in 2005 from 56 in 2004, a trend he expects to continue. Currently 20 percent of Airbus' production goes to the Chinese market.

''Airbus sees unprecedented potential in China,'' Barron said at the ''China Meets Europe,'' gathering organized by the Hamburg Chamber of Commerce.

Barron said the Chinese market has seen 15 percent growth in aviation traffic in the last few years and that it was the market with the most sales potential for the company.

He said the company is also working closely with the Chinese in terms of production. About half of Airbus aircraft now include some Chinese made parts.

The cost of the projects announced Thursday, which will take place near the company's Beijing headquarters facilities, ''wouldn't be significant,'' Barron said.