S. Korean Firms May Work on New McDonnell Jetliner : Aerospace: The company has been seeking equity partners for the $3-billion MD-12X program. It would be the Asian nation’s first major entry in commercial airline production.
McDonnell Douglas Chairman John McDonnell held discussions last week with three South Korean firms about their participation in the MD-12X, a new aircraft that is under consideration by McDonnell.
If the Korean firms obtained a significant share of the MD-12X program, it would mark that country’s first major entry into commercial aircraft production. Korean Air produces small farings called “wing fillets” for the MD-11 jetliner, a relatively minor portion of the aircraft.
McDonnell’s Douglas Aircraft unit in Long Beach is holding discussions with a number of aerospace firms worldwide to seek equity partners for the $3-billion program to develop the MD-12X jetliner.
McDonnell held discussions with Korean Air, Samsung Aerospace Industries and Daewoo Heavy Industries, company spokesman Don Hanson confirmed Friday. But he declined to comment on a Korean news report saying that the negotiations were almost complete and that the Korean firms would get a $500-million share of the program.
Last March, Douglas Vice President Don Snyder said the firm was holding talks with Northrop, Rockwell International, General Dynamics, Casa of Spain and Alena of Italy. Hanson said the talks are continuing.
Spokeswoman Barbara Anderson at McDonnell’s St. Louis headquarters confirmed that John McDonnell was in Korea earlier this month, visiting military and commercial customers. She did not have any information about whether he was there to discuss the recent cancellation of the F/A-18 fighter contract by the South Korean air force.
McDonnell is seeking equity partners that would provide financing for up to 90% of the MD-12X development cost, according to Snyder. He said in a March interview that the company hopes to get partners to put up at least two-thirds of the financing.
The new wide-body aircraft, a derivative of the MD-11, would carry 375 passengers, compared to the Boeing 747’s 421 passengers. Douglas is seeking to obtain approval from the McDonnell board of directors by August to begin offering the aircraft to potential customers.
Snyder said Douglas is likely to build a new plant for the aircraft in another state, citing a lack of space in Long Beach and problems with the business climate in California.
Since that disclosure in March, California state officials have held discussions with Douglas officials to see if they can lure the firm back to either Long Beach or another location in the state.
