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Did Boeing buy out McDonnell Douglas?

Following Boeing's 1996 acquisition of Rockwell's North American division, McDonnell Douglas merged with Boeing in August 1997 in a US$13 billion stock swap, with Boeing as the surviving company.



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Boeing's new acquisition allowed Condit to move forward on his other key project: diversifying Boeing's revenue streams. With the lucrative government contracts it picked up with McDonnell Douglas and Rockwell, Boeing's comparatively fledgling space and defense operations could flourish.

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Boeing aircraft often incorporate more tactile feedback and manual controls in their cockpit systems, which appeal to pilots who prefer a traditional flying experience. Airbus planes emphasize automation and computerized systems, reducing pilot workload but offering less hands-on control.

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Most companies fail when customers do not buy their products. Douglas failed because customers did buy its products. Douglas fell with a successful innovative product, the DC-9, and an order backlog in excess of $3 billion and growing, enough work to keep its production lines humming for years.

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