The European airplane manufacturer hopes the A350 will allow it catch up in the market for long-haul, mid-sized planes dominated by rival Boeing's 777 and 787.

"Handing over the first A350 represents a significant step in Airbus and aviation history," Airbus CEO Fabrice Bregier said at a ceremony in Toulouse, southern France. He added that Airbus was "revolutionizing our industry and redefining the way people fly."

Airbus overhauled the original design of the A350 to make it more fuel-efficient. The company says the plane consumes 25 percent less fuel when compared with older jets.

Airbus invested around $12-$15 billion (10-12 billion euros) in its strategy to position the A350 between the B777 and the 787. By the end of November, the company had won 778 orders for the aircraft from 41 customers worldwide, Airbus said.

Boeing, meanwhile, has received 1,055 orders for its Dreamliner aircraft, which was launched several years ago. Airlines are in the midst of a major push to modernize their fleets and benefit from the fuel savings offered by the latest generation of planes.

The first commercial flight of Qatar Airways' brand new aircraft is set to take place on January 15, from Doha to Frankfurt. Qatar Airways, owned by the energy-rich Gulf state, has ordered 80 of the planes, making it the largest single customer of the plane to date.

Qatar, rich in natural gas, is looking to transform itself into a major aviation hub in an attempt to develop new sources of income and reduce its dependence on natural resources.

sri/cmk (dpa, AFP, AP)