May 6, 1997



Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549

          RE: Registration Statement on Form S-3
              Registration No. 333-23455

Ladies and Gentlemen:

     This is to supplement the letter of Avondale Industries Inc. (the
"Registrant")  dated  May  2, 1997 requesting under Rule 477(a) of the
Securities Act of 1933, as amended,  withdrawal  of  its  registration
statement on Form S-3 (registration number 333-23455) filed  with  the
Commission on March 17, 1997 (the "Registration Statement").

     As  was stated in such letter, the Registration Statement related
to the proposed  sale  of  three  million  shares  of the Registrant's
common  stock,  of  which 2,946,387 were proposed to be  sold  by  the
Avondale Industries,  Inc. Employee Stock Ownership Plan (the "Selling
Shareholder") and 53,613  were  to be sold by the Registrant.  This is
to advise you that in light of the decision of the Selling Shareholder
not to proceed with the offering  and  changed  market conditions, the
Registrant  no  longer  wishes to sell those of its  shares  that  are
covered by the Registration  Statement.   In  addition, the Registrant
hereby represents that no offers or sales of the shares covered by the
Registration Statement have been made.

                                      Sincerely yours,

                                      /s/ Albert L. Bossier

                                      Albert L. Bossier