Lockheed's L-1011 Tri Star Program

Case Study # 62083

Aviation, Aeronautics
Business > Accounting
Business > Companies

A look at the Lockheed L-1011 Tri Star program and if it was a financially sound undertaking.

3,082 words () | 3 sources | MLA | 2005 United States

Paper Summary:

This paper presents a history of the Lockheed L-1011 Tri Star program and uses a break even and cost of capital analysis to see if the program should have been started considering the risk involved. The paper also deals with the politics and competition involved surrounding commercial aircraft development and manufacturing.

Table of Contents
Lockheed Martin's Tri Star Program
Lockheed's Break-Even Analysis for the L-1011
Cost of Capital
Conclusion

From the Paper:

"In the break-even analysis introduced by U.E Reinhardt in The Journal of Finance, the Lockheed L-1011 Tri Star program is scrutinized for its viability. Many of the article's ideas stem from the 1971 Congressional hearings concerning the emergency loan guarantee legislation. At the time, Lockheed was experiencing a liquidity crisis and large cost overruns on several military contracts. The Department of Defense refused to absorb these additional costs, forcing Lockheed to seek a federal guarantee for $250 million of additional bank credit for the completion of the L-1011 Tri Star program."

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APA Citation:

Lockheed's L-1011 Tri Star Program (2012, January 15). Retrieved February 13, 2012, from http://www.academon.com/Case-Study-Lockheed's-L-1011-Tri-Star-Program/62083

MLA Citation:

"Lockheed's L-1011 Tri Star Program" 15 January 2012. Web. 13 Feb. 2012. <http://www.academon.com/Case-Study-Lockheed's-L-1011-Tri-Star-Program/62083>