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

Date:         19 Dec 96 03:06:31 
From:         kls@ohare.Chicago.COM (Karl Swartz)
Organization: Chicago Software Works, Menlo Park, California
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>> The MD-95 is almost surely dead.

>Agreed.

Stonecipher apparently says it will be built.  Coincidentally, this
week's AW&ST says the nose structure for the first MD-95 arrived in
Long Beach (from McDonnell Douglas Aerospace in Huntington Beach).
Assembly of the first MD-95 is due to start in April.

>The MD-8xs out there will go on flying through their life
>cycle whether or not McD belongs to Boeing or not. Does the mere fact that
>they are no longer in production render them "devalued?"

The market value of F100s and F70s took a steep dive when Fokker went
under, and hasn't really recovered even though the spares operation
was quickly sold and is on solid ground.  I'm not sure if that's a
good comparison or not, but think of fleet commonality.  Reno Air, for
example, has an MD-80/MD-90 fleet, and they derive a lot of the same
benefits as Southwest does from an all-737 fleet.

Today, if you were starting an airline in a similar business, which
aircraft would you choose?  Even buying used, the MD-80/90 is now at a
disadvantage to the 737 and A319/320/321, because in time you'll want
new planes and with the MD-80/90 you may not be able to get them, even
though Boeing/MacDAC is saying they'll continue production.

>In fact, I would say that the introduction of the MD-90 did more to
>devalue the MD-80 than stopping MD-80 production would.

I think the MD-80 could have been worse if there were not a fairly
painless path to a more state-of-the-art aircraft.

>> Seems fair to me, at least on the commercial side.  The only Douglas
>> piece which *might* have some staying power is the MD-11F

>With both American and Delta showing marked DISinterest in the MD-11, I
>suspect that it is dead as a passenger aircraft already ...

That's why I specifically said MD-11*F*.  I agree, the passenger MD-11
is essentially dead.

>... and if the commercial version of the C-17 comes on line, wouldn't
>it better serve the needs of FexEx etc. than an MD-11F?

The MD-17 (commercial C-17) may lift greater weights, and has that
nice rear cargo door for really big stuff.  I don't see where either
is of great value to a package carrier like FedEx or UPS, though.
FedEx also has built up a huge fleet of MD-11s and DC-10s, and the
commonality is worth a fair amount to them.  I've heard that they are
nevertheless interested in the MD-17, but if true, I'd think it would
be for a different mission than the MD-11F, and thus would not
preclude more MD-11F purchases.

>My impression has been that the USAF really won't be needing a tanker any
>time soon. Last I read, the re-engined KC-135 is supposed to be in service
>until around 2030!!

They also have the KC-10s, which I think are being upgraded to a
cockpit similar to the MD-11 and/or C-17.

>If a new tanker IS required, I'd bet on a 767 derivative.

That sounds like the winning bet.

--
Karl Swartz	|Home	kls@chicago.com
		|Work	kls@netapp.com
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Moderator of sci.aeronautics.airliners -- Unix/network work pays the bills