Monday, Mar. 14, 1955

Prize for Boeing

Boeing's President William McPherson Allen flew into Seattle from Washington last week with a big smile on his face and a bigger contract in his pocket. Boeing had won the Air Force competition for jet tankers over both Douglas and Lockheed. Prize: a $460 million contract for a "substantial" number (more than 200) of KC-135s, the modified version of Boeing's 707 prototype jet transport (TIME, March 8, 1954). For Lockheed, there was a consolation prize consisting of a development contract for an "advanced" type of tanker.

The big new contract, along with the KC-135s already on order, brings Boeing's total jet-tanker commitments to $700 million. Except for Lockheed's 6-47 production at its Marietta plant, the contract makes Boeing virtually the sole supplier of medium (B-47, KC-97 tankers) and heavy (B-52) planes for the Air Force. It was also good news for United Aircraft Corp., which will supply some $180 million worth of J57 Pratt & Whitney engines for the tankers, and for some 8,000 Boeing suppliers. For Boeing, it assures high-level production into 1958--and another big step toward being the first U.S. aircraft company with a commercial jet airliner. Airline operators guessed that the Air Force would let Boeing take orders for commercial transports, since the Air Force itself is interested in building such a civilian fleet.

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