TriStar firm faces big losses

LOCKHEED Aviation, the United States manufacturers of the TriStar airbus, face substantial losses unless they re ceive more orders fon the plane, according I to US government auditors.

The firm, which was saved from bankruptcy only by a huge injection of government funds, has at present 184 sales and options to buy from airlines around the world. It needs 275 definite sales to break even, the auditors report.

Until now, the company has set its 'breakeven' point at between 255 and 265 sales, but progress in winning orders has been slow and costs are mounting.

Lockheed executives are trying to maintain an air of optimism about the prospects for selling the TriStar, but the auditors are very sceptical about the firm's future prospects. Lockheed might generate enough cash by 1975 to repay the $250m government - guaranteed bank loans which kept it afloat, the company need many more orders.

Substantial losses could be suffered unless these orders are forthcoming The company the auditors say. claims that Its present sales will give rise to "second-generation' business in the years to come.

payments. He demanding or was a reality accept. market.

They called terest rate pol pean governm flows of 'hot" boundaries. The EEC representatives at the con ference disputed the widely-held US view that west Europe is not carrying as much of the burden as it should in military expenditure within NATO and asserted that US tariffs are more protectionist and higher than those of the EEÇ. -In trade negotiations beginning next year the US is expected to try and force the Common Market to cut its tariffs, particularly for farm produce. At the same time it is demanding that European NATO members pay a greater share of the organization's budget. On Thursday the bank governors in Basle expressed concern about the inflationary threat posed by the huge pool of dollars in the so-called Eurodollar This on spe future is based largely culation about the prospects of the aircraft market.

The auditors' report has a direct bearing on the position of Rolls.

Royce which supplies the RB211 engines for the TriStar. Negotiations on extending the RollsRoyce contract with Lockheed are due to begin shortly. The present contract, to supply 555 engines, is nearing completion.

apologized if this sounded imperious but added it that west Europe must for co-ordination of inicies by the various Eurolents to avoid disruptive money across international