Lockheed, Airbus Weigh Tieup

US defence giant Lockheed Martin Corp. is in talks with Airbus Industrie, the European airline consortium, aimed at a broad collaboration on future military and commercial projects, the Washington Post reported on Friday. Neither side was considering a merger or any cross-ownership arrangement, the newspaper quoted executives of both companies as saying. Exploratory talks began a year ago but executives said the pace has quickened in the wake of the proposed merger of Boeing and McDonnell Douglas.

Corp., which would create the largest aerospace firm.

Both sides are looking to create a counterweight to Boeing-McDonnell Douglas, said one industry executive familiar with the discussions. The talks were set to continue this weekend among top executives of Lockheed, Airbus and its member firms at the

 

semi-annual air show outside of Paris, the Post said. Id say were still in the dating stage, Micky Blackwell, president of Lockheed Martins aeronautics division told the Post in a telephone interview. Weve had our second date and both sides are hoping for more, he said. Boeing chairman Philip Condit told the newspapers editors and reporters at a meeting that he was unconcerned by the prospect of closer ties between his two main rivals. He said his best guess was that the Federal Trade

Commission would approve the merger.