May 12, 1999

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
March 31, 1999 and 1998,  as indicated in our report dated May 6, 1999;  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  March  31,  1999 is
incorporated by reference in Registration Statement No. 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.



/s/ DELOITTE & TOUCHE LLP
New Orleans, Louisiana