| McDonnell Douglas was a major American | | | | |
| aerospace manufacturer, producing a number of | | | | McDonnell/Douglas merger |
| famous commercial and military aircraft. It | | | | |
| merged with Boeing in 1997 to form The Boeing | | | | Douglas was strained by the cost of the DC-8 |
| Company. | | | | and DC-9, and the companies began to sound |
| | | | each other out about a merger. Inquiries |
| Background | | | | began in 1963; Douglas offered bid |
| | | | invitations from December 1966 and accepted |
| The company was founded from the firms of | | | | that of McDonnell. The two firms were |
| James Smith McDonnell and Donald Wills | | | | officially merged on April 28, 1967 as the |
| Douglas. Both were graduates of MIT and had | | | | McDonnell Douglas Corporation. In 1967, with |
| worked for the aircraft manufacturer Glenn L. | | | | the merger of McDonnell and Douglas Aircraft, |
| Martin Company. Douglas had been chief | | | | Dave Lewis, then president of McDonnell, was |
| engineer at Glenn L. Martin before leaving to | | | | named chairman of what was called the Long |
| establish Davis-Douglas Company in early 1920 | | | | Beach, Douglas Aircraft Division. At the time |
| in Los Angeles. He bought out his backer and | | | | of the merger, Douglas Aircraft was estimated |
| renamed the firm the Douglas Aircraft Company | | | | to be less than a year from bankruptcy. Flush |
| in 1921. | | | | with orders, the DC-8 and DC-9 aircraft were |
| | | | 9 to 18 months behind schedule, incurring |
| McDonnell founded J.S. McDonnell & Associates | | | | stiff penalties from the airlines. Mr. Lewis |
| in Milwaukee, Wisconsin in 1928. His idea was | | | | was active in DC-10 sales in an intense |
| to produce a personal aircraft for family | | | | competition with Lockheed and the L-1011. In |
| use. The economic depression from 1929 ruined | | | | two years, Mr. Lewis had the operation back |
| his ideas and the company collapsed. He went | | | | on track and in positive cash flow. He |
| to work for Glenn L. Martin. He left in 1938 | | | | returned to the company's St. Louis |
| to try again with his own firm, McDonnell | | | | headquarters where he continued sales efforts |
| Aircraft Corporation, this time based near | | | | on the DC-10 and managed the company as a |
| St. Louis, Missouri. | | | | whole as President and Chief Operating |
| | | | Officer through 1981. |
| The war was a major earner for Douglas. The | | | | |
| company produced almost 30,000 aircraft from | | | | The DC-10 began production in 1968 with the |
| 1942 to 1945 and the workforce swelled to | | | | first deliveries in 1971. In 1977 the DC-9 |
| 160,000. The company produced a number of | | | | "Super 80" (later named the MD-80) Series was |
| aircraft including the C-47 (based on the | | | | launched. This proved to be a very successful |
| DC-3), the DB-7 (known as the A-20, Havoc or | | | | program. The next aircraft to be launched was |
| Boston), the Dauntless and the A-26 Invader. | | | | the MD-11, an upgraded DC-10. To date, the |
| Both companies suffered at the end of | | | | MD-11 remains the only modern trijet. After |
| hostilities, facing an end of government | | | | its launch in 1986, the MD-11 sold 200 units, |
| orders and a surplus of aircraft. Both | | | | but was discontinued after the merger with |
| heavily cut their workforces, Douglas sacking | | | | Boeing (see below) as it competed with the |
| almost 100,000 people. As part of their | | | | Boeing 777. McDonnell Douglas' final aircraft |
| wartime work Douglas had established a United | | | | was launched in 1988. The MD-90 series was a |
| States Army Air Forces think-tank, a group | | | | stretched version of the MD-80, equipped with |
| that would later become the RAND Corporation. | | | | International Aero Engines V2500 turbofans, |
| | | | the largest rear-mounted engines ever on a |
| Douglas continued to develop new aircraft, | | | | commercial jet. The MD-95, a modern regional |
| including the successful four-engined DC-6 | | | | aircraft closely resembling the DC-9-30, was |
| (1946) and their last prop-driven commercial | | | | the only McDonnell Douglas jet to remain in |
| aircraft, the DC-7 (1953). The company had | | | | production (as the Boeing 717) after the |
| moved into jet propulsion, producing their | | | | merger with Boeing. |
| first for the military - the conventional F3D | | | | |
| Skyknight in 1948 and then the more 'jet age' | | | | In 1992, McDonnell Douglas bravely unveiled a |
| F4D Skyray in 1951. Douglas also made | | | | study of a double deck jumbo-sized aircraft |
| commercial jets, producing the DC-8 in 1958 | | | | similar to the Airbus A380, designated MD-12. |
| to compete with the new Boeing 707. McDonnell | | | | Despite briefly exciting the market, the |
| was also developing jets, but being smaller | | | | study was perceived as merely as a public |
| they were prepared to be more radical, | | | | relations exercise to disguise the fact that |
| building on their successful FH-1 Phantom to | | | | Douglas was struggling under intense pressure |
| become a major supplier to the Navy with the | | | | from Boeing and Airbus. It was clear to most |
| Banshee, Demon, and the Voodoo. The advent of | | | | in the industry that Douglas had neither the |
| the Korean War helped push McDonnell into a | | | | resources or the money to develop such a |
| major military fighter supply role, | | | | monstrous aircraft, and the study quickly |
| especially with the noted F-4 Phantom II | | | | sank without trace. Interestingly, the |
| (1958). | | | | concept was used in Boeing's later |
| | | | Ultra-Large Aircraft study intended to |
| Both companies were eager to enter the new | | | | replace the 747, but ultimately the double |
| missile business, Douglas moving from | | | | deck concept would eventually see the light |
| producing air-to-air rockets and missiles to | | | | of day in the Airbus A380. |
| entire missile systems under the 1956 Nike | | | | |
| program and becoming the main contractor of | | | | Through the years, McDonnell Douglas also |
| the Skybolt ALBM program and the Thor | | | | produced many successful military aircraft, |
| ballistic missile program. McDonnell made a | | | | including the F-15 Eagle (1974) and the F |
| number of missiles, including the unusual | | | | A-18 Hornet (1975) as well as the Harpoon and |
| ADM-20 Quail, as well as experimenting with | | | | Tomahawk missiles. The oil crisis of the |
| hypersonic flight, research that enabled them | | | | 1970s was a serious shock to the commercial |
| to gain a substantial share of the NASA | | | | aviation industry and McDonnell Douglas was |
| projects Mercury and Gemini. Douglas also | | | | forced to contract heavily and also began to |
| gained contracts from NASA, notably for part | | | | diversify to reduce the impact of potential |
| of the enormous Saturn V rocket. Both | | | | future downturns. In 1984 the corporation |
| companies were now major employers, but both | | | | acquired Hughes Helicopters, soon McDonnell |
| were having problems. | | | | Douglas Helicopters. |