The head of US defence contractor Lockheed Martin warned Airbus it could lose business to the firm because of a late-running project.

The A400M airlifter, a military transport plane being developed for seven NATO countries at a cost of 20 billion euros (£19bn), was designed to replace Lockheed's C-130 as a workhorse for military deployments but is two years late.

Speaking at Reuters Aerospace and Defense Summit in Washington, Lockheed Martin chief executive Robert Stevens said the C-130 was ready to snap up any stray business.

"If you are late to market you are obviously going to be missing opportunities," he said.

Lockheed expects demand for hundreds of C-130s in coming years as nations adapt to a broader spectrum of threats and humanitarian missions.