BUSINESS

AP Source: Airbus plans to build first US factory in Alabama

06/27/2012 07:47 EDT | Updated 08/27/2012 05:12 EDT
European plane maker Airbus intends to build its first U.S. plant in Mobile, Ala., a person with knowledge of its plans told The Associated Press on Wednesday.

The person, who requested anonymity because a public announcement has not been made, says the company would build A320s there.

The A320 is a widely-used plane flown by U.S. airlines, including Delta and US Airways. An Alabama plant would have Airbus building planes squarely in the territory of archrival Boeing.

The plan was first reported by The New York Times, citing anonymous sources, who said that an announcement could come as soon as Monday.

Airbus has said it wants to expand, and that it favours a site in the Southern U.S. A spokeswoman says no decision has been made by the company's board.