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Concept Illustration of the
original three-engine MD-12X
“We couldn’t get in at Airbus,” by Chang and the Douglas costs 40% lower than those of
Chang told the author, “and sales team to the MDC board the USA, MDC appeared victo-
rious. The Wall Street Journal
in October 1991. At that gather-
“ ing, the board decided to make commented:
Boeing was getting stronger.
formal proposals to airlines for
An alliance was the the MD-12 and create Douglas “In one move, the
Global—an alliance of mainly
weakest of the big
only way we could Asia-based aerospace compa- three worldwide
survive. We had nies—to fund its development. makers of jetliners
been talking to the Chang recalled, “We believed would turn the huge
that the MD-12 would take $5
Taiwanese for two billion to develop and we wanted industry on its ear,
years in an informal to sell 49% of Douglas to a con- with implications for
way, but serious sortium. We reached agreement the US trade balance,
discussions started with Taiwan Aerospace, which domestic employment
would coordinate Taiwan’s aero-
in 1990.” space industries to take around and the transfer of
25% of the equity, and they
Another option canvassed was would take as much production technology abroad.”
Lockheed, which had departed work as possible. They would
from the commercial aircraft also buy 50 MD-12s, which was And it was employment and
market after the heavy losses important, because they would technology issues that domi-
incurred with the TriStar pro- make progress payments to nated the media. Trade journals
gram. Douglas officials revealed help fund the building of the such as Aviation Week & Space
in October 1989 that talks had aircraft. With the other Asian Technology called on the US
taken place, and that the MD-12 and European partners, we had government to take a second
could be built at Lockheed’s the 49%. Mitsui in Japan would and third look at the deal which
Georgia plant. also buy between ten and 20 it labelled “bad for the American
MDC was finding it extremely MD-12s”—and provide additional economy.”
difficult to reverse the effects financing for airline purchases. While much ill-informed debate
of years of neglect and a lack raged about the technology
of investment in tooling and The MD-12’s wing and fuselage transfer, according to a MD-12
research and development. Asia, would be built in Taiwan with marketing plan Douglas had
with its modern plant, high work Douglas responsible for design, secured 94 orders from eight
ethic, as well as lower costs, final assembly, and flight test. airlines with a further 41 ‘poten-
was looking more like the per- With labour accounting for one- tial orders’ from eight customers.
fect— and only—solution. That third of the cost of developing a The airlines that had committed
‘perfect solution’ was presented new aircraft and Taiwan’s labour to the MD-12 were: American
ASIAN AIRLINES & AEROSPACE JANUARY - FEBRUARY 2024 | 19
