The Rafale, which is the successor to the Mirage jet, entered service in the French navy in 2004 and 10 models are based on the nuclear-powered aircraft carrier, The Charles de Gaulle.

French Defence Minister Michele Alliot-Marie, who attended the ceremony, called the planes "quite exceptional" and the "most comprehensive and most high-performance" fighter jets in the world.

Referring to the delays suffered by the project since the first Rafale prototype appeared in 1986, she added: "I regret only one thing. It's that it did not enter the French army at the moment it was conceived."

The French airforce had waited 10 years longer than expected for its first Rafales, a record delay in the industry, mainly because of "budgetary problems", according to Dassault.

The French government has so far ordered 120 Rafales, of which 82 are earmarked for the airforce and 38 for the navy. Under the latest defence spending program, which runs from 2003-2008, the government is expected to order up to 294.

Dassault Aviation has fallen from the heights of its success in the 1980s when it sold its Mirage jets to about 10 countries, particularly in the Middle East.

The market for fighter planes has changed since the beginning of the Rafale project, with the Europe-made Eurofighter aircraft, the US-made F-15 Eagle and the new F-35, as well as Russian models, now competing for national defence budgets.

Dassault has been unable to sell the Rafale to foreign governments and has suffered a series of setbacks since it began marketing the plane abroad in 1994, notably with the Dutch, South Korean and Singaporean governments.

In a high-profile sales pitch, French President Jacques attempted to convince his Saudi Arabian allies to place an order for the plane during an official visit to the country in March.

The Arab nation has still not made a decision, with the trade press suggesting that the defence ministry is ready to buy 48 planes from a foreign manufacturer.

"This plane is a good plane in the opinion of all its pilots, if not the best in its class," said the chief executive of Dassault Aviation, Charles Edelstenne, in April. "We will export it one day."

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