Lockheed, Airbus Talk Partnership

Defense giant Lockheed Martin and the European aircraft consortium Airbus are holding talks about taking part in joint commercial and military projects, a Lockheed spokesman confirmed Friday.

“The bottom line is yes, we are in conversations with Airbus,” said James Fetig, of Bethesda-based Lockheed Martin.

The Washington Post reported in Friday’s editions that the initial talks began a year ago. Executives said they picked up in recent months following the proposed merger of Boeing Co. and McDonnell Douglas Corp. That merger would create the world’s largest aerospace company, challenging Lockheed in the military market and Airbus in the commercial market.

If the negotiations prove successful, according to the report, Lockheed could become an important long-term supplier for Airbus jets while Lockheed would combine with Airbus partners to offer tanker and transport aircraft to the Pentagon.

Fetig said Lockheed and Airbus have no plans to merge, and “we are not about to partner with Airbus in building the A3-XX” jumbo jetliner.

He denied the move was designed to maintain market share following the proposed Boeing-McDonnell Douglas merger.

“I think it’s more of a way for Airbus to remain competitive,” Fetig said. “Our strategic business plan calls for us to expand our business into the international marketplace and this is a very logical way, and that’s why we are so interested.”

Airbus spokesman Alain Dupiech in Toulouse, France, would not confirm the firm is in talks with Lockheed. “We are talking with many companies worldwide,” he said. “But we never announce it until the plans are set.”

He denied any talk of a merger.

Analysts have said Airbus needs a North American partner to help with capital and sales, and defense dependent Lockheed is looking to move into the jetliner market. Airbus has about a one-third share of the commercial aircraft market vs. about two thirds for Boeing.