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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (April 12, 1962)
MEDFORD MAIL TRIBUNE. MEDFORD. ORESON Constructing Mewl MORE MEAT FOR YOUR MONEY AT THUNDERBIRD! Planes Good Way 01 'Losing Shirt' By ROBERT J. KRUNO UPI Aieilon Edllor Washington - (WO - The way to lose your financial ihirt (ut thue dayt it detign Ing, building and lelling new airliners. r r r SWIFT'S PREMIUM FANCY MILK-FED VEAL FOR A CHANGE OF PACE IN THOSE SPRINGTIME MEALS , VEAL ROAST Swift's Premium. Tender, meaty shoulder cuts. Flavorful, lb. 59 BREAST OF VEAL 'Rlmtity.Cookwih9'l '! 9W-'I. 29 VEAL SHOULDER CHOPS 69 V E A L RIB CHOPS Swift's Premium. Delicious every time lb. 79 n Swift's Premium all meat In For one of the hard fact of the jet age it that it hat been fine for the airlinet and the passenger!, but a red ink astern rain Fed Pork all new vacuum twin pack. The frank that millions favor. Full pound pkg. a n THUKIPAY. APRIL 11. 1911 bath for most of the manufac turers. The five U.S. companies en gaged in making Jet-powered transport are somewhat coy about profit-and-lost figures But it is no secret that only one of the five - Boeing - has made any money from making jets. The othert - Douglat, Con vair, Lockheed and Fairchlld - admit they have taken more or leu of a beating in their commercial transport pro grams. How much of a beat ing is hard to establish be- cause all of them manufac ture other products besides airliners. The losses on the latter arc not reflceted in of ficial financial statements, generally because they have been absorbed by other manu facturing programs or by tax write-offs. Three Reasons There are three reasons for the general inability to make money , on new airliners: -Development costs in al most every cate ran higher than estimated. Douglat, lor example, spent nearly S300 million designing, testing ana building the DCS - a figure roughly double what the com pany planned to spend. -Original prices of new transports were set too low. Both Boeing and Douglas put price tags of about $9 million on their early jets and then found they had to increase them to $8 million. -Sales fell below expected levels in many cases. The air lines splurged on orders for the bigger jets, then discover ed they also needed much smaller jet equipment. What Survey Shewed A UPI survey of the five leading U.S. commercial transport manufact urers showed this picture: Boeing: By tar the most successful In jet talcs, it has delivered or has orders for more than 400 of the various models of the 707, and alto hat at least SO orders for it new triple-engine 727 short- range jet which will not be flown until 1083. Boeing does not say how much It has mad on the 707 because it has poured most of the profits into the 727 development pro gram. Douglas: It has delivered 176 DC8't and has enough orders to keep the DCS as sembly line going. Douglas says it is now showing a modest profit on all DC8's be ing built, but this is because previous losses were absorbed by tax write-offs. Could Break Even Lockheed: At one time, Lockheed figured it would break even on its Jet-powered Electra program If it could sell about 200. Total sales fell slightly under that, but the cost of modifying all Electras after two fatal crashes plus highcr-than-expccted produc tion expenses resulted In an Income loss of about $37.3 million even alter tax write offs. Convalr: This division of General Dynamics has sold SB of the 880 Jetliner series and 25 of the bigger 000. Financial sources estimate Con vair't write-off of Its 880-800 losses totaled $425 million. Some Convair officials themselves say the firm took this beating mainly because the 880 was grossly under-priced to begin with; that the market for the 880 was overestimated: and that the 090 - which was sup posed to be just a bigger ver sion of the 880 - turned out to be virtually a new airliner with brand-new problems. Now Showing Profit Fairchlld: Makers of the prop-Jet F27 used by many local service airlines, Fair child says it is now showing a profit on the planes being built, although it also con cedes it must sell consider ably more to recoup previous development and production costs that far surpassed F27 revenues. Boeing's success with the 707 stems mainly from the fact that it also designed the plane as a flying tanker for Ihe Air Force. This gave Boeing some hefty aid in pay ing the enormous develop ment costs of the commercial transport. The experience of these manufacturers is Ihe chief reason why the federal gov ernment is helping to finance the next step in the Jet age -the supersonic airliner. Center Gut Pork Ghons LUII1 trimmed loin chops lb. Pork Roast istxsssSL-. 29 Rib LOIN Light, letn (astern loin. Always a dinner time favorite lb. Just the nice lean well 59 69c Pork Loin Roast Spare Ribs Meaty loin and cuts. A JSt Makes fin eating lb. J,e3 COUNTRY STYLE lots of thick tender meat. iQli Nice to bake lb. 55 Ends & Pieces bacon Sausage IRolls Pork Rolls Swift's sliced. Chop end cook with scrambled eggs. Fry or fin for sea soning. 5 IB. ECONOMY PAK Special this week. just "Oenco" pure pork. Seasoned to perfection. Far a hearty breakfast 3 TOllS just tlice V fry. in el 1 lb. calls rolls. 1 Bar S boneless with a real smoke flavor. ib S3 GOLD HILL PEAR Dessert or Salad Treat No. 2' can for (5(5 BANQUET FRESH FROZEN-INDIVIDUAL SIZE PKGS. OF 2-5 OZ. 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