Word: tristar
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Dates: during 1970-1979
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...Eastern Air Lines Flight 902, a Lockheed Tristar jumbo jet, descended toward the same runway. It was caught in the same turbulence, measured at up to 90 m.p.h. Pilot Clifton Nickerson alerted the tower to the "wind shear and turbulence." Struggling, in his term, to "save it," he prudently pulled the huge craft back into the air and off to a safe landing at nearby Newark Airport. Some of his passengers grumbled about the "poor service...
...asked to convert $275 million in loans to Lockheed into preferred stock in the company and to extend $375 million in additional credit to Lockheed at an initial fire-sale interest rate of 4%. Most troublesome is the condition that airlines will have to convert options on 45 Lockheed TriStar jetliners to firm orders by Nov. 30-one that Textron stipulated must be met before it will finally go ahead with the deal...
...Lockheed Aircraft Corp. In 1971 the aerospace giant faced bankruptcy because of cost overruns on the C-5A transports it was building for the Air Force; the Pentagon eventually let it escape with a $200 million loss. Almost immediately, Lockheed's effort to build the L-1011 TriStar nearly crashed before the jumbo jet ever got off the ground when Rolls-Royce, builder of the plane's engines, went bust, eventually saddling Lockheed with $190 million in unplanned expenses. That time it took an act of Congress (approval of an unprecedented Government guarantee for $250 million in loans...
That seemed a bearable load, with the TriStar flying and getting high ratings from airline executives-until the fuel shortage hit. Faced with sharp curtailments in jet-fuel supplies, airlines have canceled hundreds of flights and delayed orders for aircraft. Lockheed had expected to collect around $ 150 million in cash in 1974, as final payment on deliveries of nine TriStars to Eastern Air Lines; now the deliveries, and payments, have been postponed until 1975 and 1976. Pacific Southwest Airlines is taking a four-month delay on two more TriStars (price: $20 million each). On top of that, Japan...
Thus Lockheed must wait for cash, while continuing to pay interest at 10% and 11% on millions of dollars borrowed to pay for parts and labor on the partially completed planes. Overall, Lockheed has delivered 54 TriStars, has firm orders for 75 more and options for an additional 70, but the total is still 76 planes below company officials' most optimistic estimate of the break-even point on the project. Without the TriStar, says Vice President and Controller Vincent...