Reassignment of Navy Contract Advised

The U.S. comptroller general has recommended the Navy terminate a contract with Sabreliner Corp. and award the $250-million pact to Flight International Group Inc., company spokesmen said.

The recommendation, which involves the five-year undergraduate Naval Flight Officers Training Program, follows a protest that Flight International lodged in March, when the contract was awarded to St. Louis-based Sabreliner.

Flight International, which provides dogfight simulation training, said it lodged the protest when it learned that its bid had been rejected, and the comptroller general found in its favor.

Flight International delivers aviation services with interests in government and military contracts as well as commercial flight operations.

Trading in all Flight International stock was halted for months after analysts found discrepancies in financial reports showing multimillion-dollar profits actually were six-digit losses. A new management team corrected those problems over the summer, spokesmen said.