Airbus last week acknowledged that its plan to build a 100-seat regional jet with China, Singapore Technologies and Italy's Alenia has been officially canceled. But the company plans a new collaboration with China, possibly with the Asians as partner in the planned A3XX 600-seat super-jumbo transport.

Adam Brown, Airbus vice president of forecasting and strategic planning, said the 100-seat project was scuttled by high costs and low potential return. The aircraft also would have challenged Boeing's new 717 transport, which first flew last week. The 717 was formerly known as the MD-95. First deliveries are planned for mid-1999.

Airbus is expected to unveil a plan at this week's show to shrink its popular A319 transport to fill the void. Such a derivative would limit development costs and speed time to market. However, the aircraft would be up to 20,000 pounds heavier than the 717, limiting fuel efficiency and increasing seat-mile costs. Boeing also plans to keep its 717 price low by building up to 60 units a year.

By Paul Proctor