PARIS, July 24 (Reuters) – Europe's Airbus pronounced the recession over after wrapping up a busier-than-expected Farnborough Airshow with a $3 billion-plus order for dozens of jets from Virgin boss Richard Branson.

The British entrepreneur announced the preliminary Virgin America order for 40 Airbus A320 jets, plus options for 20 more, by live video link beamed from his island in the Caribbean.

''I am happy to celebrate my 60th birthday this week and I can't think of a better present than getting 60 new planes,'' Branson told a news conference.

Virgin Atlantic founder's order capped a rush of air show orders for short- and medium-haul jets, which began with the return of another aviation industry icon on Monday.

Steve Udvar-Hazy, who created aircraft leasing in the 1970s, ordered 100 Airbus and Boeing jets for his new concern Air Lease Corp., prompting a stampede of orders from other financing firms.

''Ladies and gentlemen, the recession is definitely over,'' Airbus sales chief John Leahy told a news conference.

''Liquidity is back in the market, traffic is back in the market and GDP growth is back,'' Leahy added.

Chief Executive Tom Enders said Airbus would sell ''north of 400'' planes in 2010 compared with a previous target up to 300.

Airbus unveiled net new orders for 130 planes worth over $13 billion and Boeing 103 new orders worth over $10 billion.

They had a combined 176 provisional orders worth over $19 billion.

Boeing hailed what it called a ''continuing recovery.''

Aerospace shares in Europe rose sharply, led by Airbus parent EADS which gained almost 6 percent. In mid-afternoon US trading Boeing Co. shares rose about 6 percent.

The optimism fed into a broad 2 percent share-market rally as confidence was also boosted by encouraging earnings.

''It looks as though we have turned the corner and that is why we are seeing strong growth,'' Airbus' Leahy said.

He said airline figures showed that premium traffic was rebounding after a slump during the financial crisis.

''It went down when investment bankers and lawyers got fired, but they got hired back and planes are flying full again.''

Leahy won a bet with EADS Chief Executive Louis Gallois by doubling year-to-date orders at the show and had said on Tuesday Airbus would top its order forecasts for 2010.