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Tuesday, November 9, 1993 - Page updated at 12:00 AM

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Business Digest

Mcdonnell Douglas May Cut Production, Magazine Says

WASHINGTON - McDonnell Douglas Corp. is prepared to run its commercial aircraft unit at a very low rate of production through 1998 to offset an expected weakness in orders, Aviation Week and Space Technology said today.

Douglas Aircraft Co. can profitably manufacture as few as 20 MD-11 trijets and 25 MD-80 twinjets per year between 1994 and the end of 1998, fewer than the 30-35 MD-11s and 35-40 MD-80s that will be produced this year. Douglas Aircraft has remained profitable over the past few years in the face of declining revenues, mainly by slashing costs in personnel and inventory, the magazine said.

Although many analysts expect The Boeing Co. and Airbus Industrie to force McDonnell Douglas out of the civil aircraft business, McDonnell executives say the St. Louis company will remain a niche supplier.

Copyright (c) 1993 Seattle Times Company, All Rights Reserved.

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