Abstract

Juggernaut In Reverse

The U.S. Defense Secretary Robert McNamara announced in late January that, as a result of recent Soviet Union developments, his department would reduce its order for F-105D Thunderchief, pet of the U.S. Air Force, and gradually replace it with a modified version of the Navy's F-4H. "Phasing-out" the F-105, which represents 90 per cent of business for the company, meant that the company would lose $600 million in orders and have no production schedule beyond 1964, whereas it had - expected to roll until 1966 (it takes about two years to make an F-l05). However the officials of the aircraft making company Republic made no public protest against the phase-out at first, probably to avoid or at least post- pone the adverse effect on its stock position.