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Lockheed Is Major Contender to Build Fokker-100 Aircraft

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From Reuters

Lockheed Corp. is the favored candidate to build Dutch-designed Fokker-100 airliners in the United States, a Fokker spokesman said Tuesday, but the American company stressed that a deal was not at hand.

Fokker spokesman Rob Mol said negotiations were not finished but added: “Lockheed is definitely the most serious candidate . . . if we decide to open up a production line in the United States. This is an extremely strong possibility.”

Mol said the final decision would depend on fresh North American orders but said the proposed Lockheed deal would help secure these by guaranteeing customers delivery on time.

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Another Fokker spokesman, Bart Van Veen, said independent studies by Lockheed and NV Koninklijke Nederlandse Vliegtuigenfabriek Fokker put North American demand for 100-seat planes like the Fokker-100 at 1,200 to 1,400 between 1990 and 1996. “We feel we can claim a share of at least 30% of that total if we can deliver on time,” he said.

Lockheed is actively seeking subcontract work to replace the work it will lose after completing production of the Air Force C-5B cargo plane at its Marietta, Ga., facility.

A spokesman for Calabasas, Calif.-based Lockheed confirmed that it was holding talks with Fokker but added that the company could not say that a deal was about to be made. “We’ve been talking to them for about a year and half,” said Lockheed spokesman Richard Martin.

But he said Lockheed is cool to the idea of becoming a cost-sharing partner. “I guess it (cost sharing) is a necessary evil, but Lockheed is not interested in getting back into the commercial aircraft business,” Martin said.

In addition, Lockheed is holding talks about subcontracting or joint ventures on commercial aircraft with Boeing, McDonnell Douglas and Airbus Industrie.

Lockheed ended its involvement in the commercial aircraft business in the mid-1970s when it ceased production of its L-1011 commercial jetliner.

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“We’re mostly interested in subcontract work. We have the space, the capability and the people.” But Martin also said that to his knowledge, Lockheed is not close to a deal with anyone.

Fokker spokesman Van Veen said production of the 107-seat, twin-engined Fokker-100 at the Dutch company’s headquarters--11 aircraft this year but expected to rise to a peak of 45 in 1990--is insufficient to satisfy demand.

Industry analysts said the planned Lockheed link was no surprise. Fokker said as far back as 1986 that the company, like other European manufacturers such as Airbus Industrie, was studying starting production in the United States.

“Potentially, it is a good deal. They had been looking for a long time to reduce their dollar exposure,” said Roel Gooskens, analyst at brokerage van Meer James Capel.

“Also, they were looking for a strong partner and in Lockheed they have found one,” he said. “But on the other hand, Fokker will lose a bit on the profit margin. Lockheed won’t be doing this out of philanthropy.”

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