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COMMERCIAL AIRCRAFT BUSINESS IMPROVED DRAMATICALLY IN 1991, SAYS McDONNELL DOUGLAS CHAIRMAN

 COMMERCIAL AIRCRAFT BUSINESS IMPROVED DRAMATICALLY
 IN 1991, SAYS McDONNELL DOUGLAS CHAIRMAN
 ST. LOUIS, Feb. 13 /PRNewswire/ -- The Douglas Aircraft Co. (DAC) led the way in making 1991 a "turnaround year" for McDonnell Douglas Corp. (NYSE: MD), said John McDonnell, chairman and chief executive officer, in commenting on the corporation's 1991 record-setting financial results, announced recently.
 McDonnell Douglas had all-time record earnings of $423 million on revenues of $18.448 billion -- also a record -- in 1991. The commercial aircraft business at DAC was responsible for about a third of total corporate operating earnings and revenues. It had operating earnings of about $290 million on almost $7 billion in revenues.
 In a message to everyone working for the corporation, McDonnell expressed pride in the progress the entire corporation had made in 1991 and cited the commercial aircraft operations as having "the most dramatically evident" improvement.
 "The commercial aircraft business at DAC earned roughly three times as much money in 1991 as it did in the best prior year in the past two decades," McDonnell noted. "Lower unit costs, better pricing and high output combined to raise earnings in the MD-80 program to a record level."
 With 31 deliveries in 1991, the MD-11 generated nearly $3 billion in revenues. With 138 deliveries (not including two deliveries involving a repurchase agreement), the MD-80 accounted for more than $3.5 billion in revenues in 1991.
 In service with 11 carriers by the end of the year, the MD-11 fleet carried an estimated 1.5 million passengers in 1991. Total flight hours for the fleet exceeded 60,000. The totals are growing with more than 60 flights a day and over 2,700 revenue hours a week.
 In the whole year of service, there were fewer than 50 flight cancellations for technical reasons -- a record that is exceptional for any aircraft in its introductory period.
 Airline customers have found the MD-11 and the MD-80 to be equal to or better than all comparable aircraft in dispatch reliability. The MD-11 achieved a remarkable dispatch reliability of 94.67 percent for its first year of service -- and was at over 95 percent in early 1992. That compares with a dispatch reliability of 93.3 percent for the Boeing 747-400 in its first year of operation. In the 150-seat category of aircraft, the MD-80 and the Boeing 737 tied for the lead in dispatch reliability in 1991 -- at 98.9 percent -- well ahead of the A320.
 The MD-11 family of models grew in 1991 with the introduction of a new configuration -- the convertible freighter, or MD-11CF, the first ordered in August by Martinair-Holland. The first MD-11CF is scheduled for delivery in 1995. In 1991 China Eastern became the first Asian carrier to operate an MD-11 freighter.
 In 1991 Delta Air Lines added two MD-11 firm orders, American Airlines exercised four options, and VASP Brazilian Airlines became the newest MD-11 customer when it announced plans in October to acquire two of the new trijets. As of Dec. 31, 1991, the MD-11 program included 138 firm orders, 160 options and reserves, and 34 delivered airplanes, for a total of 332. Airlines currently flying the MD-11 are: Alitalia, American Airlines, China Eastern, Delta Airlines, Federal Express, Finnair, Korean Air, LTU, Swissair, Thai Airways International, and Varig.
 China Airlines will receive the first of four MD-11s on firm order in 1992. EVA Airways, with five firm orders for MD-11s and another eight options, will receive its first MD-11 in 1994.
 In 1991 airlines placed 27 new firm orders for DAC twin jets. This included two from Alaska, 20 from Delta, three from Far Eastern Air Transport, and two from Transwede.
 Fabrication of the first MD-90s began in 1991. Powered by the new V2500 engine and featuring a state-of-the-art flight deck, the MD-90 will be the quietest and most efficient aircraft in its class when it is introduced into airline service in 1994.
 MD-80s are in service with 52 customers worldwide, making it one of the most successful commercial jets in today's aviation world. As of Dec. 31, 1991, the MD-80/90 program included 235 firms orders, 335 options and reserves, and 963 deliveries for a total of 1,533 aircraft. Major users of the MD-80 include: Alaska, Alitalia, American, ATI, Continental Airlines, Delta, Japan Air Systems, SAS, TWA, and US Air.
 The backlog of orders for McDonnell Douglas commercial aircraft declined in 1991 because of the high number of deliveries, a softening of commercial aircraft orders worldwide, and canceled orders. Even with this decline, the firm backlog in the commercial aircraft business totalled $18 billion at year end -- or two-and-a-half times its 1991 revenues. Economists at DAC predict a strong resurgence in air travel which will lead to growing demand for commercial aircraft later this decade. Traffic and demand for new aircraft for airlines will be especially strong in the Asia/Pacific region, they predict in a new 20- year outlook study.
 The study forecasts worldwide deliveries of more than 14,000 new airliners between now and the year 2010, with an open market (for those yet to be booked) exceeding 11,200 units valued at close to $800 billion.
 Airlines in the Pacific/Asia region are predicted to require 3,261 of those aircraft, representing just under one third of the total dollar value in the open market.
 -0- 2/13/92
 /CONTACT: Mike Burch of McDonnell Douglas, 314-234-3500; or Nissen Davis of McDonnell Douglas Pacific & Asia, Ltd., 852-810-1500/
 (MD) CO: McDonnell Douglas Corp. ST: Missouri IN: AIR SU:


KJ -- LA030 -- 9980 02/13/92 17:21 EST
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Date:Feb 13, 1992
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