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McDonnell scraps MD-XX
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October 28, 1996: 11:33 a.m. ET
Company stops plans to build key aircraft on same day CFO departs
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NEW YORK (CNNfn) - McDonnell Douglas Corp. confirmed Monday that it has canceled plans to build the MD-XX, the aircraft regarded as its best chance to compete against Boeing and Airbus Industrie of Europe in the commercial aircraft industry.
The MD-XX was to be McDonnell's biggest and longest-range aircraft, with between 300 and 375 seats. One of the factors that led to the demise of the project was cost. The aircraft would have cost about $2 billion to develop but another $1 billion to upgrade Douglas Aircraft facilities to produce it.
Officials said the decision was made Friday but was not publicized. That same day, the company announced the departure of Chief Financial Officer Herbert Lanese.
The two events left analysts wondering what else was in store for the company. Although closing down the struggling Douglas Aircraft seemed unlikely, selling a stake in the division is considered a possiblity. 
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