The article says "extinction" but I disagree, probably another merger with Airbus or some other large company.
https://aviationweek.com/aerospace/aircraft-propulsion/opinion-will-boeing-become-next-mcdonnell-douglas
5 replies (most recent on top)
Great Article and spot on why it was a bad decision made by Boeing to merge with McDonnell Douglas in 1996. Did not know McDonnell was the reason for Douglas' down fall too. Met a guy who worked at Douglas and he said it was a great company before McDonnell came in and destroyed it just like they did with Boeing ever since the merger.
Will Boeing Become The Next McDonnell Douglas?
Richard Aboulafia February 16, 2021
AW&ST covers
Douglas Aircraft started down a 30-year path toward extinction when it merged with McDonnell in 1967. McDonnell management prioritized military programs and was not willing to make the investment necessary to maintain its commercial jetliner market position. By the time it merged with Boeing, Douglas’ jetliner products were on their last legs.
It has been nearly 25 years since Boeing and McDonnell Douglas merged. Given Boeing’s significant engineering cuts, program execution problems, clear prioritization of shareholder returns, extremely uncertain product development road map and deteriorating market share outlook, it is time to consider whether Boeing Commercial Aircraft (BCA) is destined to share Douglas’ fate. Three criteria are key.
- Slashed engineering spending. Boeing announced it would cut BCA independent (noncontract) research and development (IR&D) by about 25%, and indeed, 2020 spending fell from 2019 by slightly more than that.
Yet over the past 10 years (2011-20), BCA spent $22.3 billion on IR&D, an average of 4.8% of BCA revenue in that period. McDonnell Douglas, by contrast, spent an average of just over $300 million annually on all noncontract R&D between 1993 and 1996, and this included military and space technology research. If McDonnell IR&D was two-thirds commercial, then BCA’s engineering spending has been about 10 times greater.
However, much of this BCA R&D budget was spent on rectifying problems with the 787 and 737 MAX. The rest was spent on derivatives. Boeing has not launched a clean-sheet jetliner since 2004, when the 787 began. Douglas went 30 years without a new jet launch; Boeing is at the 17-year mark.
- Market coverage gaps. Douglas never had the product line needed to cover all market segments. But as new segments emerged, such as twin-aisle twinjets, Douglas’ coverage further deteriorated. Also, it lost single-aisle bandwidth as the MD-90 failed as a broader family.
BCA has much broader coverage, with no significant gaps relative to Airbus. But its midmarket-segment standing is a major problem (see graph). The A321neo is outselling the 737 MAX 9/10 by about 5 to 1. This implies a sizable market-share loss in coming years.
It's probably to late to save Boeing. What they should have down wayyy back during the 787 clusterf–k times is fire everyone company-wide associated with McDonnell Douglas.
Ohh yeah! If we merge with Airbus we will get free French Fries for lunch everyday! Woohoo
"McDonald"?!! There goes your credibility in just a few seconds. Don't worry, you'll get back to that same level of credibility in maybe a couple of years!!!
Its Mcdonnell first of all
And yes, Boeing seems to be making the same mistakes.