August 13, 1997

        Avondale Industries, Inc.
        Post Office Box 50280
        New Orleans, Louisiana  70150

        We  have made a review, in accordance with standards  established  by
        the American  Institute  of  Certified  Public  Accountants,  of  the
        unaudited  interim financial information of Avondale Industries, Inc.
        and subsidiaries  for  the  periods  ended June 30, 1997 and 1996, as
        indicated in our report dated July 29,   1997;  because  we  did  not
        perform an audit, we expressed no opinion on that information.

        We  are aware that our report referred to above, which is included in
        your  Quarterly  Report  on  Form 10-Q for the quarter ended June 30,
        1997, is incorporated by reference in Registration Statement Nos. 33-
        31984 and 333-32165 on Form S-8.

        We also are aware that the aforementioned  report,  pursuant  to Rule
        436(c) under the Securities Act of 1933, is not considered a part  of
        the  Registration Statement prepared or certified by an accountant or
        a report prepared or certified by an accountant within the meaning of
        Sections 7 and 11 of that Act.



        DELOITTE & TOUCHE LLP
        New Orleans, Louisiana