Boeing and McDonnell Douglas merger?!

From:         kls@ohare.Chicago.COM (Karl Swartz)
Organization: Chicago Software Works, Menlo Park, California
Date:         16 Nov 95 03:48:45 
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Thursday's Wall St. Journal has a lengthy article beginning on page A3
(in the Western Edition) detailing merger discussions between Boeing
and McDonnell Douglas.  Apparently Boeing first instigated the talks
about a year ago, motivated mostly by a desire to improve its fairly
modest military operations.  MD's 80% gain in stock market value over
the past year, due to some major successes such as ValuJet's recent
MD-95 launch order and the military's order for 80 additional C-17s,
hasn't killed off Boeing's interest yet.

More directly relevant to this newsgroup, the move would effectively
eliminate Boeing's only domestic competitor in the commercial airliner
market.  The WSJ claims they are not overly concerned about the anti-
trust implications, since MD has dwindled to such a small player with
Airbus representing the major competition.  Selling off Douglas if a
merger were completed isn't in the plans, though it's difficult to
imagine a Boeing-Mac selling both the 737 and MD-80/90/95 and almost
as difficult to see them cancelling the MD programs outright.

Karl Swartz	|Home
Moderator of sci.aeronautics.airliners -- Unix/network work pays the bills