LUCAS AEROSPACE'S Geared Systems division (GSD) is again free to tender for US Government contracts, a reprieve which opens the way to a potential sale of the troublesome US unit by its UK parent.
The threat of debarment from Government tenders was raised last year after a bitter dispute with the US Navy over the performance of Lucas gearbox units for Mc Donnell Douglas F-18s.
Lucas eventually agreed in October to pay $88 million to settle the issue, but the Navy's notice of proposed debarment has only now been lifted.
At the time of the settlement, Lucas said that it planned to sell or find a joint-venture partner for GSD, which has now been restructured, but that it first had to ensure that the unit was free to tender for defence work.
Lucas has progressively sold off most of the US aerospace interests picked up in an acquisition spree in the 1980s. GSD has sales of around $50 million.
Source: Flight International