Boeing and McDonnell Douglas Agree to Collaborate

Date:         04 Dec 96 02:42:16 
From:         kls@ohare.Chicago.COM (Karl Swartz)
Organization: Chicago Software Works, Menlo Park, California
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[Boeing press release]

SEATTLE, Dec. 3, 1996 -- The Boeing Company and McDonnell Douglas
Corporation announced today that the two companies have agreed to pursue
strategic collaboration on future Boeing wide-body commercial airplane
programs.

The agreement is expected to be finalized in January 1997. The first Boeing
project McDonnell Douglas will participate in is the development of
proposed new versions of the 747 jumbo jet.  Initially, the agreement is
expected to bring several hundred McDonnell Douglas employees to Seattle
in January to begin assisting with engineering design and analysis on the
747-500X/-600X.

Boeing officials said the strategic collaboration will allow the company
to take full advantage of McDonnell Douglas' broad range of design,
production and systems capabilities on future airplane models.

"We have a record number of orders for commercial jets and several ongoing
development programs," said Ron Woodard, president of Boeing Commercial
Airplane Group. "McDonnell Douglas has excellent design and production
capability -- both in people and facilities -- that are not being fully
utilized. We look forward to applying those resources to future Boeing
wide-body airplane programs in a way that is a win-win for both of us."

"Both companies will benefit greatly from this agreement," said Mike Sears,
president of Douglas Aircraft Company, the commercial aircraft division
of McDonnell Douglas. "Boeing is the industry leader, and we look forward
to applying our extensive resources -- most immediately our engineering
design talent - to collaborative wide-body airplane projects."

Boeing and McDonnell Douglas have collaborated on other projects. Currently
they are both members in the international study group exploring the
potential for next-generation supersonic commercial transports.

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