12/17/2025
The Day Two Giants Became One
On December 15, 1996, a seismic announcement reshaped the global aerospace industry.
Boeing and McDonnell Douglas revealed a plan for a $13.3 billion all-stock merger.
The deal would fuse the top commercial jet maker with a premier military contractor.
The new entity would instantly become the world's largest aerospace company.
It was projected to employ 200,000 people and generate $48 billion in annual revenue.
The merger aimed to create a dominant U.S. champion against European rival Airbus.
U.S. and European regulators launched intense anti-trust investigations over competition concerns.
The deal was approved in 1997 after Boeing agreed to significant concessions.
The European Commission forced Boeing to end exclusive supplier contracts with airlines.
The merger formally closed on August 1, 1997, ending McDonnell Douglas as an independent brand.
Historians debate the merger's long-term impact on Boeing's corporate culture.
Critics argue it imported a cost-cutting, financially-driven mindset from McDonnell Douglas.
This shift is often cited as a root cause of later engineering and safety crises.
The 1996 announcement remains a definitive turning point in aviation history.