Quantcast

Analysis: Did Boeing's merger with McDonnell Douglas contribute to later safety issues

Asia's airlines blame supply chain woes for disrupted operations
Qantas and Qatar Airways: Planned partnership in the Australian aviation industry under the microscope
Riyadh Air plans new jet order decision early next year
Calls for a blanket ban on politicians receiving free flight upgrades
Wizz Air Loses Challenge Against EU-Approved Romanian Aid for TAROM
Southwest, Other Airlines Plan a Shake-Up. Why They Need More to Boost Their Stocks.
One of Boeing's biggest customers leveled fresh criticism over ongoing 737 Max delivery delays
Low-Cost Airlines Innovate with Subscription Models
LA Considers $25 And $30 Minimum Wages For Hotel And Airport Workers
Airlines are on the hook for more than you think if something goes wrong with your trip
WA Labor & Industries plans to create new airline worker protections
Airlines must now give automatic refunds for significant delays. Here's what to know.
American Airlines Technical Operations, Fleet Service, Cargo and Central Load Planning team members ratify new agreement
Spirit Airlines Pursues Bankruptcy as a Path to Tie-Up With Frontier
American Airlines fined $50M for violating disability laws
Canada's flight attendant union applauds NDP bill to end unpaid work in the airline sector
American Airlines testing new technology that would crack down on boarding
Exciting New Airline Routes Coming to North
Another city ignores airport commission's advice, zones for housing near JWA
United shares hit pre-pandemic high after airline forecasts strong finish to 2024, plans buyback
Alaska Airlines Just Made Its Loyalty Program Even More Lucrative With New Rewards, Better Upgrades, and More
Food safety problem closes Detroit airline kitchen leaving 200 flights without meals
5 Reasons Why Kazakhstan's Air Astana Is Establishing Itself As A Key Player In Asian Aviation
JetBlue is no longer serving hot food in economy class on transatlantic flights
Video shows traveler hurl computer monitor at Frontier employees in Chicago
White House 'in touch' with airlines as hurricanes Helene, Milton spark price-gouging fears
Airline bans two items from luggage amid conflict in the Middle East
Turkish Airlines pilot dies midflight, leading to emergency landing in New York
Spirit Airlines Explores Bankruptcy Filing
Airlines turn to AI to allocate gates and cut waiting times
Analysis: Did Boeing's merger with McDonnell Douglas contribute to later safety issues
Policy
Webp a3
CEO Kelly Ortberg | Boeing

In August 1997, Boeing merged with McDonnell Douglas, marking a significant change in the U.S. commercial aviation industry. The merger left Boeing as the sole major aircraft manufacturer in the country, consolidating control over prices, supply, and development.

The deal was announced in December 1996 as an all-stock transaction valued at $13.3 billion and closed at about $16.3 billion by August 1, 1997. This merger created what was then the world's largest aerospace company. Boeing absorbed McDonnell Douglas's defense operations and streamlined overlapping commercial aircraft lines, focusing on models like the Boeing 737 and 777.

Antitrust reviews were conducted by both the U.S. Federal Trade Commission (FTC) and the European Commission before clearing the merger. The FTC gave its approval on July 1, 1997, while European regulators requested some competitive concessions but ultimately allowed the deal to proceed.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

After merging, Boeing reorganized around three main divisions: Commercial Airplanes, Defense & Space, and Shared Services. It retired several McDonnell Douglas aircraft models such as the MD-11 passenger plane and consolidated production efforts on its own product families. The integration brought financial benefits through increased bargaining power with suppliers and more stable earnings due to a diversified production backlog.

Critics argue that Boeing's culture shifted after absorbing McDonnell Douglas’s approach to cost management and scheduling. This shift reportedly moved Boeing away from its engineering-driven roots toward prioritizing financial metrics and efficiency. Harry Stonecipher, a former McDonnell Douglas leader who became CEO of Boeing, said his goal was to change Boeing into a business-focused organization rather than an engineering-led one.

This cultural transformation is cited by some industry observers as a contributing factor to later safety issues involving Boeing aircraft. Investigations following incidents with the Boeing 737 MAX pointed to ongoing cultural problems dating back to the merger era. Congressional inquiries highlighted concerns about concealment of information and pressure on employees regarding production schedules, while FAA reviews called for stronger oversight of delegated work.

There is debate over whether these changes directly led to the crashes involving the 737 MAX aircraft. While no direct causal link has been established between the merger and those incidents, many cite post-merger changes in company priorities as an upstream factor.

In response to these events, Boeing has taken steps to improve its safety culture since the crashes occurred. The company established a board-level Aerospace Safety Committee in 2019 and appointed a Chief Aerospace Safety Officer who publishes annual safety reports. Employee reporting of safety concerns increased significantly in 2024 after initiatives encouraging open communication were introduced.

Boeing also implemented a company-wide Safety Management System approved by the FAA in 2020 and expanded it following further incidents such as the Alaska Airlines door plug blowout in 2024. Externally, FAA oversight of Boeing has intensified with new production caps for certain aircraft families and limits on certification authority for new products.

The consolidation resulting from this merger marked not only reduced competition but also signaled a broader change within Boeing itself—from an engineering-focused organization to one driven primarily by business considerations.

Organizations Included in this History
More News

Flying Food Group, Inc. has announced the recipients of its 2025 scholarships, with all five applicants receiving awards this year.

Oct 23, 2025

Dnata, a global provider of air and travel services, has entered into a joint venture with Azerbaijan’s Silk Way Group to launch ground handling and cargo operations at Alat International Airport, located in the Alat Free Economic Zone in Baku.

Oct 22, 2025

Delta Air Lines has announced the release of version 7.5 of its mobile app, introducing new features aimed at making travel planning and management easier for customers during the holiday season.

Oct 22, 2025

The Fair Work Commission has ruled that a former employee of dnata Airport Services was unfairly dismissed and awarded $36,468.39 in compensation.

Oct 22, 2025

The 13th Annual Breast Care International Walk for the Cure took place in Kumasi, Ghana, drawing around 30,000 participants, including survivors, healthcare professionals, students, traditional leaders, and advocates.

Oct 22, 2025

The Los Angeles International Airport (LAX) has announced the closure of Terminal 5 to allow for a significant redevelopment.

Oct 22, 2025