McDonnell Douglas is dropping its plan to build its biggest and longest-range jetliner, the MD-XX, The Wall Street Journal reported Monday.
The paper said executives and directors of the St. Louis-based company made the decision Friday but did not publicize it.Managers at the company's Douglas Aircraft Co. in Long Beach, Calif., were disappointed by the decision, the paper said. The MD-XX was viewed as essential to building a group of jetliners that would help Douglas Aircraft compete with industry leader Boeing Co. and Airbus Industries of Europe.
The MD-XX would have had between 300 and 375 seats, three engines and a newly designed wing. The Journal said the MD-XX would have cost $2 billion to develop, plus another $1 billion for Douglas Aircraft to upgrade its facilities to produce the plane.
On Friday, the company also announced the departure of Herbert J. Lanese, president of its military aircraft division and a top strategist.
A statement said Lanese and chief executive officer Harry Stonecipher had "sharp differences involving management and leadership styles."