Airbus yesterday dealt a setback for Midlands- based Rolls-Royce.

It said that so far deals for its planned A350 model specify General Electric will supply the engines and Rolls-Royce will not be able to compete retroactively for the work.

"The deals so far are with GE engines. The orders take advantage of a low launch price and it wouldn't be fair to open it up again," Airbus top salesman John Leahy insisted at the Paris Air Show.

Airbus has announced up to 125 commitments for the new model, almost all of them unveiled this week at the show.

The planemaker hopes to win board backing to begin building the A350 later this year, aimed at deliveries in 2010.

Rolls-Royce is still in negotiations with Airbus about offering an engine for the model, which is being designed to compete with Boeing's 787 Dreamliner due in 2008.

A Rolls spokesman said: "A decision will come when it comes."

GE has committed to the A350 programme and intends to offer a modified version of the engine it is developing for the rival Boeing plane.

Airbus hopes to win twice as many orders as arch rival Boeing during the show.

Communications director John Leay said that over the whole of the show, which runs until Sunday, Airbus should have "two times more orders" than Boeing.

His promise came as Airbus confirmed it had won a major £3.3 billion order from Indian start-up airline Indigo.

The low-cost carrier, which is being jointly launched by InterGlobe Enterprises and seasoned airline expert Rakesh Gangwal, wants to buy up to 100 twin-jet A3230 planes, each costing 60 million euros (£40 million) at list price. However, discounts are common.

Rahul Bhatia, managing director of InterGlobe, added: "The aviation industry in India is on the threshold of the next big revolution and IndiGo is ideally positioned to fill the fast emerging need for reliable, efficient and economical air travel."

Airbus also said that Mexican airline ABC Aerolineas had signed a memorandum of understanding to acquire ten A320 aircraft, with options for ten more.

It said that deliveries would begin in the second quarter of 2007. The engine manufacturer has not yet been selected.

The order from ABC coincides with its launch of a lowcost service under the Interjet brand. The airline will start services in December.