A Delta Airlines A320
A Delta Airlines Airbus 320 landing at New York's La Guardia Airport on July 12, 2009 Alberto Riva

European airplane manufacturer Airbus SAS will build its first U.S. factory in Mobile, Ala., as it ramps up competition with its main rival, U.S.-based Boeing Co. (NYSE: BA), The Associated Press reported Thursday.

The plant, which may be built in the Mobile, Ala., area, will manufacture the single-aisle, 150-seat A320 jet, the French company's best-selling aircraft, according to people familiar with the matter. Airbus may announce its plans Monday.

The A320, which competes with Boeing's 737, is a popular airplane model used frequently by U.S. airline companies including Delta, United Airlines and U.S. Airways.

Airbus officials say that single-aisle jet models will account for about 70 percent of new jet sales around the world over the next 20 years. As many as 19,200 such planes worth $1.4 trillion could be produced by 2030, with 40 percent of the aircraft replacing obsolescent and less fuel-efficient planes.

We have made no secret of our hopes to expand our global footprint, including in the U.S., as we have a very strong market here, Airbus spokeswoman Mary Anne Greczyn told the AP.

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