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Lockheed Ignored the Writing on the Wall

The recent announcement of Lockheed’s departure from Calabasas is not so surprising to some of us. You must first understand that this company is one of the last holdovers from a dwindling industry--determined in the face of all reason to defy a changing world. I worked for Lockheed for 13 years, and when I recognized this futile determination, I jumped ship.

I had been sent by Lockheed to award a developmental defense contract to a company in West Germany (two weeks after the wall came down). There was electricity in the air everywhere in Europe. It was evident that Germany would be reunited and the Cold War would soon be over.

When most defense-related companies began to recognize this, they initiated efforts to expand into commercial markets. Some defense companies began to reapply their defense technology to commercial applications, while others acquired commercial companies for the same reason.

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Lockheed destroyed the tooling for the L-1011 (its only viable commercial program and a superb aircraft) for a quick tax profit. Shortly after this event, Lockheed was forced to turn down an opportunity to bid on one of the largest aircraft orders it had seen in years because the cost of retooling the L-1011 was too high. All the while, Lockheed pushed on steadfastly, acquiring other defense companies and consolidating orders to pay for them.

In this sense, Lockheed is on target, for this is the only way to maintain growth in a shrinking market. The question is, “Do visionaries pursue shrinking markets?” The employees of Lockheed should be concerned. This company is not concerned with the community’s interests nor the fate of its employees. It has one, and only one, mission--to hold out until the last defense buck is coughed up.

Echoes of President Eisenhower’s departure speech still ring in my ears.

R. HAIL RYAN

Van Nuys

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