TOULOUSE: The first test flight of Airbus's next-generation A350 plane was going smoothly and the aircraft was "performing extremely well", its pilot said Friday, two hours after take-off.

"The aircraft is performing extremely well, we hope to reach (an altitude of) 25,000 feet (7,500 metres) very quickly," said Peter Chandler, one of the two test pilots flying the plane in the skies over the French city of Toulouse, in a video link.

Airbus's next-generation A350 plane took off on its first test flight on Friday in a milestone for an airliner the firm hopes will challenge Boeing's 787 Dreamliner in the lucrative long-haul market.

With hundreds of cheering supporters looking on, some of whom arrived early to get a prime spot under a patchy sky, the plane took off at 0800 GMT from the airport in the French city of Toulouse for a flight due to last four hours.

Much like its Dreamliner competitor, the A350 makes extensive use of light carbon-based composite materials that significantly reduce fuel consumption and costs.

Two helicopters hovered in the sky and a jet accompanied the plane as it took off just three days before the start of the high-profile Paris Air Show, where Airbus is predicting hundreds of orders as it ups its fight against rival Boeing.