Johannesburg - South Africa is to move closer to purchasing between eight and 14 A400M military transport aircraft this week by signing a further agreement with Airbus to that effect.

SA Air Force chief Lieutenant-General Carlo Gagiano has confirmed the agreement would be endorsed this week. Gagiano sees the A400M as a replacement for the Boeing 707 fleet, of which three remain on strength and two are operational at any given time.

"The A400M initiative is truly a lifeline for the SAAF and will, together with future decisions on the transport aircraft mix, rejuvenate the SAAF's transport capacity," he said.

In December last year, government committed South Africa to buying up to 14 of the four-engined aircraft that could cost R11.61 billion in total, in exchange for investment, technological knowledge and jobs.

The announcement followed an invitation at last year' s African Aerospace and Defence show for the country to participate in the multi-role mission transport aircraft's design and manufacture programme.

Near-bankrupt state arms manufacturer Denel is expected to benefit from defence offsets related to the deal.

"We are confident that a memorandum of agreement will be signed in the coming weeks," the government had said in December. Now, four months later, the memorandum appears to be ready for signature.

Airbus Military's Peter Jost said a University of the Witwatersrand study had shown that an interest in eight of the aircraft, each costing about R778 million, would create at least 401 direct jobs and 2 767 indirect employment opportunities over the programme's projected 50-year lifespan.

Government is keen on the deal as it sees the resultant industrial participation as key to its aviation industry expansion plans.

The A400M project is to be a pillar in government' s long-anticipated strategy to boost the country's aerospace sector the way that the Motor Industry Development Programme bolstered the country's car-making sector.

A draft was reportedly submitted to Trade and Industry Minister Mandisi Mpahlwa for approval last month.

The world's biggest airliner, the Airbus A380, is set to make its maiden flight in Toulouse, France tomorrow, weather permitting and barring last-minute problems, aircraft maker Airbus said.

The massive double-decker plane has room for more than 800 passengers and airlines have spoken of equipping it with cocktail bars and gymnasiums.

Eleven passenger airlines have already laid down money to buy more than 100 of the $285m-planes.

With acknowledgements to Sapa and the Cape Times.