Re: McDonnell Douglas & Boeing To Merge -- Press Release Text

Date:         17 Dec 96 03:09:17 
From: (Niraj Agarwalla)
Organization: UMass Lowell
References:   1 2
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jfmezei ( wrote:

: Out of curiosity, would there be any warranted efforts to stop this
: merger because of anti-competitive forces (or over concentration) ?

I don't see why not.  McDonnell Douglas is a distant third when it comes to
commercial airlines, so anti-competitive forces aren't the issue.  Boeing
wants to purchase McDonnell Douglas for it's defense business: The F/A-18E/F,
the MD-17, etc.  By purchasing McDonnell Douglas, Boeing hopes to avoid
the cyclical pitfalls that usually plague the commercial unit.  I think this
was another reason why it bought Rockwell's Space & Defense unit awhile back.

: While I personally never really liked McD products, I am saddened to
: see such a big corp go. It will be very interesting to see what Boeing
: does with the DC-9 line of planes (easier to say DC-9 than all the
: different derivatives that are current).

Me, too.   They might keep the MD-11 going if the freighters sell well.
MD-90 is already in production, so I don't know if they want to shut it
down, or somehow squeeze it into their product lines.  MD-80 production is
basically winding down.  I think the MD-95s will be cancelled, with
Valujet's orders or not.

: I have a distinct impression that McD will loose its
: personality/presence in the commercial airline business and that Boeing
: will
: basically gobble that part up and "paint" it Boeing. Is this a fair
: assumption ?

It's true.  The new company will retain the name of Boeing.  Of course, if
this merger goes through (I don't see why not), then this will be an end
of an era of a wonderful company.  They have produced so many different
types of aircraft over the years: DC-3, F-4s, A-4s, F/A-18s, DC-9s, DC-10s,

Niraj Agarwalla - -