Boeing Acquires McDonnell Douglas

In 1997 the Boeing Company completed its acquisition of McDonnell Douglas, combining two of the largest aerospace firms in the United States. The merger brought together Boeing's dominant commercial-jet business with McDonnell Douglas's commercial line and its substantial military and defense operations, ending decades of competition between the two companies in the airliner market.

McDonnell Douglas had been a major manufacturer of both commercial aircraft, such as the DC and MD series of jetliners, and military aircraft and defense systems. By the 1990s its commercial division had lost ground to Boeing and the rising European consortium Airbus, while its defense business remained strong.

Boeing was especially interested in McDonnell Douglas's military and space capabilities, which expanded its presence in the defense sector. The combined company became one of the world's largest aerospace enterprises, reshaping the industry and leaving Boeing and Airbus as the two dominant players in large commercial aircraft.