The European Union's trade chief called yesterday for swift results in talks due to open next week with US officials to resolve the dispute over subsidies for transatlantic aircraft rivals Airbus and Boeing.

"The global market is big enough for both Boeing and Airbus. Our task is to create the basis for fair competition between them," Peter Mandelson said in a statement from Toulouse, France, where Airbus launched its A380 superjumbo.

Washington and Brussels last week averted a legal clash at the World Trade Organisation over the world's top two plane makers, agreeing to talks on eliminating billions of dollars in subsidies.

Mr Mandelson said discussions had begun in advance of next week's opening meetings between EU and US officials.

The European Trade Commissioner added that he expected to review the negotiations with outgoing US Trade Representative Robert Zoellick at the World Economic Forum meeting in Davos, Switzerland, at the end of this month.

"I intend to honour the text of my agreement with Bob Zoellick, and I have instructed officials to begin talks without delay," he said. "I want to see early progress."

Washington last year unilaterally ended a 1992 pact with Brussels limiting subsidies to civil aircraft makers and filed a complaint with the WTO over state aid to Airbus. That prompted a tit-for-tat EU complaint over US support for Boeing.

The two sides stepped back from the brink of WTO litigation last week, agreeing to negotiate for three months on eliminating subsidies.

Mr Mandelson said in an interview on Monday that the EU would be prepared to negotiate beyond the three-month deadline if substantial progress has not been achieved by then.