Essay on Lockheed Tri Star Case Write Up
Group #8 Case Write-Up
Lockheed Tri Star Case Study
Although highly regarded by the military, Lockheed sought to move into the lucrative civilian commercial aviation sector and compete with Boeing, McDonnell Douglas and Airbus. Lockheed began design and testing in 1966 on their entry, the “Tri Star”, which boasted a range of over 6,000 miles with nearly 400 passengers and speeds of close to 600 mph. They had already invested nearly $900 million in development costs. Carried by state of the art Rolls Royce turbofan engines, the L-1011 was by all accounts, a technological winner and might be the company’s ticket back to solvency.
The summer of 1971 found the …show more content…
A PLANE TOO BIG TO FAIL…
In the aftermath of Wall Street’s collapse of 2008, we readily associate the now familiar debate over which businesses or industries are “too big to fail” with the recent events at Lehmann Brothers, Bear Stearns, AIG and General Motors—it is a concept with deep roots in the American political scene. Certainly, the numbers have changed by logarithmic proportions, with “billions’ replacing “millions’ as the units of concern. But for tax payers in the summer of 1971, the case was made before the public with open Congressional hearings that without help, Lockheed Aircraft Corporation would be on the verge of failure- and with it would disappear over 60,000 jobs and one of the nation’s most strategic defense contractors.
Although highly regarded by the military, Lockheed sought to move into the lucrative civilian commercial aviation sector and compete with Boeing, McDonnell Douglas and Airbus. Each planned offerings in the wide bodied, long distance sector with the 747, DC-10 and