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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Boeing Seeks Alliance With Rival Company May Strike Deal With Mcdonnell Douglas To Build Planes

Karen Schwartz Associated Press

Faced with an onslaught of new orders, Boeing Co. said Wednesday it is in talks with less fortunate McDonnell Douglas Corp. to get some help building airplanes.

“We have a lot on our plates. We have the work and they have the resources,” Boeing spokeswoman Janice Hayes said from company headquarters in Seattle.

She said the company was looking at a wide range of areas where McDonnell Douglas could help its commercial aircraft efforts. The Press-Telegram in Long Beach, Calif., reported Wednesday that McDonnell Douglas might build a larger version of the Boeing 767, a two-engine widebody plane that carries about 250 passengers. Hayes said the talks were exploratory.

The newspaper also said the first project Douglas might do for Boeing would be to design the tail section for a new, larger version of the 747 jumbo jet. Other work could include painting planes in Long Beach and sending Douglas workers to Seattle for specific projects, the newspaper said.

The newspaper said that by taking on work for Boeing, McDonnell Douglas would be able to keep its work force busy until its own business picks up.

Boeing has a backlog of 1,287 commercial planes on order, compared with a backlog of 1,079 a year ago. The company has also been developing new versions of its jets and absorbing Rockwell International’s defense and space unit, which it bought earlier this year.

McDonnell Douglas hasn’t been as busy.

McDonnell Douglas recently decided against building a new jumbo jet, which had been dubbed the MD-XX. The company also lost out in the competition to build the military’s next fighter jet.

Plane builders frequently supply parts to other companies that design and assemble aircraft. Los Angeles-based Northrop Grumman Corp., for example, is a subcontractor on Boeing 747 jetliners.

Hayes declined to say whether a deal with McDonnell Douglas might go beyond other sub-contracting arrangements.

Last fall, officials of McDonnell and Boeing met to explore the possibility of a merger or some other business combination.