BEIJING, April 25 -- European plane maker Airbus expects to launch a joint venture in China to make aircraft components, as part of its efforts to carve a larger slice of the world's fastest growing aircraft market.

    "We are studying the possibility of setting up the venture with AVIC II (China Aviation Industry Corporation II) and expect to finalize the deal as early as August," Laurence Barron, president of Airbus China, said, but declined to elaborate.

    Airbus expects to use the joint venture to produce composite material parts for its Airbus A350 model. The company last year agreed to have up to 5 percent of the design and manufacturing work of the model done in China.

    AVIC II, one of its partners in the nation, will also join in the program through their existing joint venture.

    Airbus, which has also agreed to assemble its smaller A320 models in China, expects such moves will help it gain an edge over rival Boeing. The company yesterday said China will need some 2,800 new passenger aircraft and freighters from 2007 to 2026, with a total market value of $329 billion.

    "Our aim is to reach 50 percent (of the market share) in 2011," said John Leahy, chief operating officer, customers, of Airbus. "In the next 20 years, the greatest demand for passenger aircraft will come from China, second only to the US."

    Carriers from the mainland currently have 401 Airbus planes in service and have ordered another 470. Airbus now holds 38 percent of China's aircraft market, compared with 7 percent in 1995.