I made this for our three children in the 1970s. It survived them and now our granddaughter is playing with it. The airplane was made with some scrap oak from old church pews and altar furniture.
Materials used were some old oak, some glue, and some latex varnish. You will also need some Fisher-Price people, or will need to make some of your own, probably on a lathe. I will give some dimensions in one of the steps.
Tools used were a radial arm saw (A table saw, even a hand crosscut saw would work.), a router, an electric drill with a 1/2 inch twist bit and a 7/8 inch spade bit, clamps for gluing, a chisel, a spokeshave, and a file. I also used some sandpaper and a brush for the varnish.
Step 1: The fuselage
Begin with the fuselage of the airplane. Dimensions are not always critical, so long as the final proportions are pleasing to the eye and the end product looks like an airplane. This plane is roughly similar to a DC-3.
The fuselage as I made it is 1 5/8 inch thick side to side, 2 inches high top to bottom, and 12 3/4 inches long.
Measure 6 7/8 inches forward from the rear of the fuselage on the bottom of the airplane. Mark a line across the bottom of the fuselage. Rabbet 5/8 inch deep and 2 3/4 inch wide for the wing.
See the yellow text boxes for a reference when making the cuts described in the rest of this step. From this same mark taper the bottom of the fuselage to the rear end of the fuselage that makes the fuselage only 3/8 inch high at its rear end (under the tail and rear stabilizer).
Turn the fuselage over onto its top surface and taper the sides of the fuselage toward the rear. The tapers begin at the rear of the wing and leave the fuselage 3/4 inch wide at the rear end.