Aviation: Jet Albatross (Contd.)

Already badly buffeted in the battle for the commercial jet market (TIME, Aug. 18), giant General Dynamics Corp. last week conceded that it may have to ground its Convair 990 before the plane ever goes into production. Reason: the 990 has developed a mysterious "drag" that keeps it from hitting the promised 640-m.p.h. cruising speed that would make it the world's fastest jet transport. Wind-tunnel tests to be completed next month will provide the data to determine whether the time and expense of eliminating the drag will be too great to bear.

The 990 has already hit General Dynamics with an unexpected $116 million bill this year, partly because of a flutter in the engine pods, and was a major cause of the company's $39.5 million loss in the first half. And even if the plane is abandoned, General Dynamics will face one more big expense on the 990. Impatient customers, led by American Airlines, have ordered 50 of the planes at $4,750,000 apiece and have made substantial down payments. If General Dynamics now decides not to deliver, it will have to make refunds estimated to run $35 million or more.