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The great Douglas Aircraft Company was forced to merge with McDonnell Aircraft in 1967 and that entity merged with Boeing in 1997.
How did it happen? How could a company that taught the world to fly with its DC-3 collapse 24 years later into Boeing's bear-hug embrace?
The answer can be traced way back to 1951, when American Airlines, then Douglas' biggest customer, persuaded it to build a longer-range version of its popular DC-6B, which was used by Australian National Airways.
Not to be deterred, Douglas announced the go-ahead of its DC-8 jet design in June, 1955 and within a few months it had orders for 61 DC-8s from Pan Am, National Airlines and United Airlines, while Boeing had just 20 from Pan Am.
In November, 1955 the tide turned, with American Airlines ordering the 707 and Trans World Airways quickly following. Boeing was also prepared to make special models to gain orders and it developed a special, shorter 707 model to meet Qantas's demands.
Continue Reading at The Australian.com.au


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