McDonnell Douglas markets MD-90 transports with G.E. UDF power

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Author: J.A. Donoghue
Date: Mar. 1988
From: Air Transport World(Vol. 25, Issue 3)
Publisher: Penton Media, Inc., Penton Business Media, Inc. and their subsidiaries
Document Type: Article
Length: 1,492 words

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McDonnell Douglas markets MD-90 transports with G.E. UDF power confidence gained in extensive flight tests prompts effort to launch two propfan airlines by mid-year. By J.A. Donoghue.

McDonnell Douglas has taken a large step towards committing its resources to building the world's first propfan-powered airliner. In fact, the Long Beach company wants to build two such transports, one seating about 114 in two classes, the other 165. In a few weeks McDonnell Douglas starts a marketing tour in which it will present to airlines firm specifications and prices in the quest for firm orders. At present the company's position is that it will build both or neither. Aircraft will be powered by General Electric's Unducted Fan powerplant.

Kim Still, the McDonnell Douglas VP newly appointed general manager of the MD-90 program, told ATW the airplanes will be priced "in the mid-$20s (million) range, and a bit lower for the MD-91." And the payoff for the customer of this new technology? "The economy of the airplane in terms of fuel is somewhere between 37-43% compared to today's MD-80, depending upon what model you are talking about. We are working on maintenance costs, trying to get them as low as possible. The third leg of the direct operation cost equation we have control over is price. We have to have a price airlines will buy." Most of the price increase over the MD-80 line will be the substantially higher engine cost, Still added.

If McDonnell Douglas gains enough orders it hopes to launch both programs in mid-year, with the first aircraft delivered in the third quarter, 1992, followed six months later by the second. "We'll let the market tell us if the 91 is first or if the 92 is first," Still said. "Our feeling is that perhaps the 91 will precede the 92."

Costs kept down

An announced price in the mid-20s for an aircraft powered by the most fuel-efficient engine likely to see the light of day in this century might seem like a low-ball estimate, a loss leader aimed at attracting customers that might hesitate to tackle the new technology. Consider the Boeing 757, somewhat larger at 185 seats but about $10 million more, or the Boeing 737-400, 146 seats and selling...

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Gale Document Number: GALE|A6312130