Lockheed, Northrop unveil their versions of the Advanced Tactical Fighter; $70 billion contract could change the fortunes of winner.

Lockheed, Northrop unveil their versions of the Advanced Tactical Fighter 

The competition between two major Los Angeles-area defense companies for a $70 billion contract to produce a new Advance Tactical Fighter took off last week when both Lockheed and Northrop unveiled their versions of the high-tech aircraft.

The Northrop version of the plane completed its first flight test while the Lockheed prototype was presented to the public and will not make its maide flight until later this month.

The two companies are leading teams of contractors seeking to build the plane for the U.S. Air Force and both are counting on the program to reverse several months of bad news for the defense industry in Los Angeles County.

With the uncertainty over future defense spending, Northrop and Lockheed, as well as other defense companies, have laid off thousands of workers in the county.

During rollout ceremonies at its Palmdale facilities, Lockheed officials used the Persian Gulf crisis to gain support for the program and the company's version of the aircraft.

"The Advanced Tactical fighter will be the nation's only national initiative to ensure Air Force and Navy air superiority into the 21st century. This mission is urgent. We may have seen the end of the Cold War between the superpowers, but we are still subject to aggression, as the crisis in the Middle East makes clear," said Lockheed Chairman Daniel Tellep.

Lockheed is leading a team of Boeing Co. and General Dynamics Corp. to build two YF-22 prototypes in hopes of winning a full contract to produce 750 of the aircraft.

Lockheed is competing with a team led by Northrop, which includes another Southland defense company, McDonnell Douglas. Northrop's YF-23 version of the Advanced Tactical Fighter was flight-tested for almost an hour at Edwards Air Force Base.

During the test flight, Air Force officials also used the Persial Gulf crisis to campaign for the aircraft.

Northrop is scheduled to test a second YF-23 in the next several weeks. The Air Force is expected to award the contract next summer, with the first of the aircraft being delivered in 1995.

Lawrence Harris, an aerospace analyst with the Los Angeles investment firm of Bateman Eichler, Hill Richards, said Lockheed may have the edge in the competition because it has already flight-tested the jet's avionics system in a Boeing 757.

He also said Lockheed may also have an advantage because of its good record on the production of 59 F-117A stealth fighters, many of which have been sent to Saudi Arabia since the beginning of the Persian Gulf crisis early last month.