Lockheed Martin is still trying to understand the impact of Airbus's decision to launch the A400M military transport on its C-130J program.

"We're still trying to read those announcements," said Tom Burbage, Lockheed Martin's customer requirements VP, who oversees the C-130J program. One of the questions is exactly what niche in the transport market Airbus Military Company will pursue. Burbage acknowledged that "there are some challenges in the airlift market," but even if the program goes ahead he believes there will still be market opportunities for the C-130J in Europe, especially among those countries not involved in the A400M venture.

Lockheed Martin doesn't expect to make changes to the C-130J to counter the slightly larger A400M. "If you change the box-size, you change the airplane," Burbage says, adding that he doesn't see a demand for an aircraft larger than the C-130J that isn't strategic class, like the C-17 or C-5.

There are currently 96 C-130Js on contract with orders for 20-22 more being worked through budget processes in several countries. The U.S. alone is expected to put 12 C-130Js on contract next fiscal year.

"We are seeing the market pick up quite a bit," Burbage said. The company hopes to win contracts in Kuwait, Denmark and Portugal. Bahrain has also expressed interest and there are early talks ongoing with Saudi Arabia, which owns 40 older C-130s.

In addition to the C-130J activity, Lockheed Martin is expecting to learn early next year whether it won the U.S. Air Force competition to upgrade older C-130s under the Avionics Modernization Program. The hotly contested program could also set the stage for international upgrades, some of which have been put on hold pending the USAF announcement. If Lockheed Martin were to lose that competition it could consider offering the upgrade internationally.

By Robert Wall