The aircraft passenger  A318 will be Airbus' smallest airliner and is the European manufacturer's first foray into the 100 seat market.Airbus' initial efforts at developing a 100 seat airliner were focused on the all new AE31X program which Airbus and Alenia, as huge Airbus Industries Asia, were developing in conjunction with AVIC of China and Singapore Technologies. 

The AE31X program arose out of earlier Chinese and South Korean studies for a 100 seater available  and a framework agreement covering its development was signed in May 1997. However on September 3 1998 Airbus announced termination of the project saying it was not economically viable.

The Airbus fight AE31X would have flown in mid 2002 and entered service in mid 2003. Final assembly would have been undertaken at Xian in China by Xian Aircraft Company.