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McDonnell Douglas

From Alfawiki
McDonnell Douglas Corporation
Company typePublic
IndustryAerospace, Defense
PredecessorMcDonnell Aircraft, Douglas Aircraft Company
FoundedApril 28, 1967; 59 years ago (1967-04-28)
DefunctAugust 1997 (1997-08)
FateAcquired by Boeing
Headquarters
Berkeley, Missouri
,
United States
Area served
Worldwide
Key people
James Smith McDonnell (founder, executive chairman and CEO), Donald Wills Douglas, Sr. (founder, honorary chairman), David S. Lewis (president and chairman of Douglas Aircraft Division)
ProductsCommercial aircraft (DC-10, MD-80, MD-11, MD-90, MD-95), military aircraft (F-15 Eagle, F/A-18 Hornet), helicopters (MD Helicopters/AH-64 Apache), missiles (Harpoon, Tomahawk)
Number of employees
132,500 (peak in 1990)
ParentBoeing (since 1997)

McDonnell Douglas Corporation stood as a prominent American aerospace manufacturer and defense contractor, established through the 1967 merger of McDonnell Aircraft and the Douglas Aircraft Company. Prior to its 1997 acquisition by Boeing, the corporation was known for producing significant commercial and military aircraft such as the DC-10, MD-80 airliners, the F-15 Eagle air superiority fighter, and the F/A-18 Hornet multirole combat aircraft.

Its main offices were located at St. Louis Lambert International Airport, in proximity to St. Louis, Missouri.

Origins

The company’s roots trace back to the enterprises founded by James Smith McDonnell and Donald Wills Douglas, Sr., both alumni of MIT who gained early experience at the Glenn L. Martin Company.

In 1921, Douglas established the Douglas Aircraft Company following his initial venture with Davis-Douglas Company. During World War II, the firm capitalized on wartime demand by manufacturing approximately 10,000 C-47 military transports (a derivative of the DC-3), which led to a workforce expansion reaching 160,000 employees.

After the war, Douglas introduced new commercial models including the DC-6 (1946) and DC-7 (1953), while also advancing into jet technology with military aircraft like the F3D Skyknight (1948), F4D Skyray (1951), and the Navy’s pioneering attack jet, the A-4 Skyhawk (1955), which remained operational for nearly five decades.

Douglas entered the commercial jetliner market with the introduction of the DC-8 in 1958, competing directly against Boeing’s 707.

Conversely, McDonnell Aircraft concentrated on military jet production, progressing from its successful FH-1 Phantom to key naval fighters such as the F2H Banshee, F3H Demon, and USAF’s F-101 Voodoo. The Korean War-era Banshee and Vietnam War-era F-4 Phantom II solidified McDonnell’s position as a leading military supplier.

Both companies engaged in missile development: Douglas advanced missile programs including Nike and Thor ballistic missiles; McDonnell developed systems such as the ADM-20 Quail and contributed to NASA’s Mercury and Gemini missions. Additionally, Douglas secured contracts for components used in the Saturn V rocket.

Despite their achievements, challenges persisted—McDonnell's business was heavily reliant on defense contracts with limited civilian market presence, while Douglas faced financial difficulties due to expenses related to DC-8 and DC-9 projects. Merger discussions began in 1963 to combine McDonnell’s defense portfolio with Douglas’ commercial aviation assets.

The merger was completed on April 28, 1967, forming McDonnell Douglas Corporation (MDC). Prior to this consolidation, McDonnell acquired 1.5 million shares of Douglas stock to provide financial support. This strategic union balanced exposure between military and civilian sectors, enhancing financial stability and growth prospects.

Establishment

Post-merger, McDonnell Douglas retained McDonnell Aircraft’s headquarters at Lambert–St. Louis International Airport in Berkeley, Missouri, near St. Louis. James McDonnell assumed roles as executive chairman and CEO, while Donald Douglas Sr. held an honorary chairman position.

Following the 1967 merger, David S. Lewis—then president of McDonnell Aircraft—was appointed chairman of the Long Beach-based Douglas Aircraft Division. At that time, Douglas Aircraft was nearing bankruptcy due to delays in DC-8 and DC-9 programs resulting in penalties. Lewis spearheaded efforts to revive sales of the DC-10 amid competition from Lockheed’s L-1011 tri-jet. Within two years, he restored profitability and returned to St. Louis as president and COO until 1971.

Production of the DC-10 commenced in 1968 with initial deliveries beginning in 1971.

Starting in 1966, McDonnell Douglas explored developing a twin-engine version called the "DC-10 Twin" or DC-X. This early twinjet concept resembled what would later become the Airbus A300 and could have positioned the company advantageously within the emerging twinjet market of the 1970s by leveraging system commonality with the DC-10. Nonetheless, this project remained at a conceptual stage without progressing further.

1970–1980

In 1977, McDonnell Douglas introduced the next evolution of the DC-9 family, initially called the "Super 80" series and later rebranded as the MD-80. That year also saw the KC-10 Extender become the second transport aircraft from McDonnell Douglas to be adopted by the U.S. Air Force, following the earlier acquisition of the C-9 Nightingale/Skytrain II.


Throughout the Cold War, McDonnell Douglas broadened its military aircraft lineup with prominent models such as the F-15 Eagle in 1974 and the F/A-18 Hornet introduced in 1978. The firm additionally developed critical defense systems including the Harpoon and Tomahawk missile platforms.

The commercial aviation sector faced considerable challenges during the 1970s oil crisis, compelling McDonnell Douglas to reduce its operational scale and diversify its business approach to better withstand future financial instabilities.

1980–1989

In 1984, McDonnell Douglas ventured into the helicopter market by purchasing Hughes Helicopters from the Summa Corporation for $470 million.[1] The division was renamed MD Helicopters, with its leading product being the Hughes-developed AH-64 Apache attack helicopter.[2]


The debut of the MD-11 trijet in 1986 represented a major advancement in commercial aviation. Although approximately 200 units were sold by 1990, production ended in 2001 following McDonnell Douglas's merger with Boeing, due to direct competition with Boeing's 777.[3] The company's last new commercial aircraft design was the 1988 MD-90, an extended version of the MD-80 featuring rear-mounted International Aero Engines V2500 turbofan engines—the largest of their kind on a commercial jet.[4] The final jet designed by McDonnell Douglas was the MD-95, which bore similarity to the DC-9-30 and represented their concluding regional airliner project.[5]


In 1988, McDonnell Douglas partnered with General Dynamics to secure a $4.83 billion contract from the US Navy for developing the A-12 Avenger II, a stealthy carrier-based attack plane designed to succeed the A-6 Intruder. This initiative underscored the company’s commitment to advancing defense aerospace technology.

Robert Hood, Jr. took over as president of the Douglas Aircraft Division in January 1989, replacing Jim Worsham. That same year, McDonnell Douglas launched a substantial restructuring effort known as the Total Quality Management System (TQMS), which reorganized teams from function-based engineering units into product-centric groups focused on individual aircraft models. This overhaul resulted in eliminating 5,000 managerial roles at Douglas; while 2,800 former managers were reassigned to new positions, 2,200 lost their managerial status.[6] The reorganization sparked dissatisfaction among staff and earned the nickname "Time to Quit and Move to Seattle," alluding to competitor Boeing's headquarters location.[7]

1990–1997

The A-12 Avenger II initiative was discontinued on January 13, 1991, by Defense Secretary Dick Cheney due to technical difficulties, budget excesses, and schedule setbacks. Legal disputes regarding contract termination claims between the government and contractors persisted until reaching a resolution in January 2014. This program's cancellation resulted in the dismissal of approximately 5,600 workers.<ref> The advanced tactical aircraft role left vacant was subsequently assumed by McDonnell Douglas's F/A-18E/F Super Hornet.[8]

Following the conclusion of the Cold War, military aircraft procurement diminished significantly. This contraction, coupled with McDonnell Douglas losing bids for the Advanced Tactical Fighter and Joint Strike Fighter, placed the company under severe financial strain.[9][10] Employment numbers reflected this downturn, falling from a peak of 132,500 in 1990 to roughly 87,400 by 1992.<ref>

Introduced in 1991, the MD-11 failed to meet performance expectations. As a result, Singapore Airlines withdrew its order for 20 MD-11s due to inadequate range capabilities and instead selected Airbus A340-300 aircraft.[11]<ref>

In 1992, McDonnell Douglas presented the MD-12 concept—a double-deck jumbo jet primarily intended as a public relations initiative amid fierce competition from Boeing and Airbus. However, lacking sufficient resources to pursue development, the project remained unrealized. Boeing’s later Ultra-Large Aircraft study echoed this vision but only came to fruition with Airbus’s launch of the A380 in the early 2000s.[12][13]<ref>

After Boeing acquired Rockwell’s North American division in 1996, it merged with McDonnell Douglas in August 1997 through a $13 billion stock transaction, with Boeing emerging as the surviving company.[14][10] Boeing adopted a refreshed corporate identity inspired by McDonnell Douglas’s logo, symbolizing a shared legacy in global aviation.<ref>

Between 1993 and 1997, McDonnell Douglas investigated developing a twin-engine jet utilizing MD-11 components paired with Boeing wings; however, these concepts did not progress beyond preliminary stages.[15][16]

In 1999, Boeing divested McDonnell Douglas’s commercial helicopter division as MD Helicopters. The Long Beach manufacturing facility was shuttered in August 2006 following completion of C-17 production orders.<ref>

McDonnell Automation Company legacy

Founded in the 1950s as a subsidiary, McDonnell Automation Company (McAuto) extended its influence beyond aerospace by pioneering computer systems for numerical control starting in 1958 and advancing computer-aided design (CAD) technologies from 1959 onward. Its CAD software MicroGDS continues to be utilized today, with version 11.5.1 released as recently as October 2023.

By the 1970s, McAuto employed approximately 3,500 personnel and operated $170 million worth of computing equipment, ranking it among the world’s largest computer processors at that time. In 1981, McAuto broadened its operations through acquiring Bradford Systems and Administrative Services for $11.5 million to enter the medical claims processing sector.

Two executives from Bradford—Joseph T. Lynaugh and Howard L. Waltman—later established Sanus Corporation in 1983 as a wholly owned subsidiary of McDonnell Douglas focused on health maintenance organizations (HMOs). After McDonnell Douglas reduced its ownership share, Sanus joined forces with Medicare-Glaser Corp. in 1986 to create Express Scripts, thereby enhancing pharmaceutical services tailored for the HMO market.

Military Aircraft

Commercial Aircraft

Experimental Aircraft

Proposed Airliners

Helicopters

  • AH-64 Apache (originally developed by Hughes Helicopters)
  • MD Helicopters line: MD 500, MD 600, MD 901/902 Explorer models

Spacecraft

Computer Systems

Following the acquisition of Microdata Corporation in 1983, the division was spun off as McDonnell Douglas Information Systems in 1993.

The product lineup included:

  • Sequel, Spirit, Reality operating systems
  • Series 18 Models 6 & 9
  • Sovereign series (a UK-developed OS distinct from Pick-based Reality systems), primarily targeting data entry applications with significant penetration in the US market

This business unit represented an expansion into IT services complementing McDonnell Douglas’s aerospace capabilities.

Missiles and Rockets

  • BGM-109 Tomahawk missile
  • Harpoon missile
  • LIM-49 Spartan missile
  • M47 Dragon missile
  • Delta II launch vehicle
  • Saturn S-IV second stage
  • Saturn S-IVB third stage
  • McDonnell Douglas DC-X, a reusable rocket prototype

Commercial Deliveries

... (Delivery data continues following similar trends) ...
Yearly delivery figures for McDonnell Douglas-designed commercial aircraft by model
DC-8 DC-9 DC-10 MD-80 MD-90 MD-11 Total
1959 21 21
1960 91 91
1961 42 42
1962 22 22
1963 19 19
1964 20 20
1965 31 5 36
1966 32 69 101
1967 41 153 194
1968 102 202 0 0 0 0 304
1969 85 122 0 0 0 0 207
1970 33 51 0 0 0 0 84
1971 13 46 13 0 0 0 72
1972 4 32 52 0 0 0 88
1973 0 29 57 0 0 0 86
1974 0 48 47 0 0 0 95
1975 0 42 43 0 0 0 85
1976 0 50 19 0 0 0 69
1977 0 22 14 0 0 0 36
1978 0 22 18 0 0 0 40
Total !556 976 446 1,191 116 200 3,485
Currently Active !2 32 50 404 65 123 676
! DC-8 DC-9 DC-10 MD-80 MD-90 MD-11

Principal Figures

Sources

  • Yenne, Bill. McDonnell Douglas. Crescent Books, 1985. .


Additional Reading

  • Francillon, René J. McDonnell Douglas aircraft since 1920. Naval Institute Press, 1990. Two-volume edition.
  • Greider, William. One World, Ready or Not. Penguin Press, 1997.


External Resources

  1. ↑ Acquisition finalized in January 1984.
  2. ↑ The Apache became a vital military asset and a significant source of revenue.
  3. ↑ Market difficulties led to the MD-11's phase-out after the merger.
  4. ↑ The MD-90 was intended to maintain McDonnell Douglas's presence in passenger aviation.
  5. ↑ The MD-95 marked the end of McDonnell Douglas's commercial jet development.
  6. ↑ TQMS sought efficiency gains but initially lowered employee morale.
  7. ↑ The cultural shift posed challenges amid intense industry competition.
  8. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named F19a
  9. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named lastplane1
  10. ↑ 10.0 10.1 Cite error: Invalid <ref> tag; no text was provided for refs named mergeJSF1
  11. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named Airbus 1999 p66
  12. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named flyint1
  13. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named MDC_brochure
  14. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named merger
  15. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ar 2023-02-08
  16. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named twin MD-11
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