AVIATION: In One Big Gulp

As boss of Lockheed Aircraft Corp., Robert E. Gross, 63, was faced with an unexpected — and huge — financial problem.

Lockheed is losing $24.5 million on its turboprop Electras, half of it spent on correcting the structural flaws that caused two crashes. Because of defense-spending cutbacks, there have been few orders for Lockheed's small JetStar transport, a $31 million project. Other programs in the works, and the need to cover expenses on some contracts which the Government may disallow, added another $12 million to Lockheed's losses.

Worried investors sold Lockheed stock...

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