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The Market for Mid-Sized Business Jets After 1970

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Biz Jets

Part of the book series: Economics of Science, Technology and Innovation ((ESTI,volume 1))

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Abstract

JetStar The Lockheed Aircraft Corporation faced “crisis years” after 1965.1 Although Lockheed had won the 1965 C-5 competition, it experienced massive costs overruns on the total package (fixed price) contract. The AH-56A Cheyenne program ran into similar cost overruns and was threatened with termination in 1969. In the same year, procurement of the C-5 was cut back from 115 to 81 aircraft. The company had similar problems with its missile programs. In response to a 1956 FAA request, Lockheed invested heavily in an SST design. The FAA selected the Boeing version in December 1966 despite Lockheed’s claim that the airlines preferred its concept. Lockheed then decided to use its C-5A design to re-enter the commercial transport market, a project that evolved into the widebody L-1011 TriStar. The L-1011 was ordered in quantity by several airlines, but always faced intense competition with the McDonnell Douglas DC-10.

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Notes

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Authors and Affiliations

  1. University of Pennsylvania, USA

    Almarin Phillips (Professor Emeritus, Chairman of the Board)

  2. Econsult Corporation, USA

    Almarin Phillips (Professor Emeritus, Chairman of the Board)

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  1. Almarin Phillips
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  2. A. Paul Phillips
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© 1994 Springer Science+Business Media Dordrecht

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Phillips, A., Phillips, A.P., Phillips, T.R. (1994). The Market for Mid-Sized Business Jets After 1970. In: Biz Jets. Economics of Science, Technology and Innovation, vol 1. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0812-6_6

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  • DOI: https://doi.org/10.1007/978-94-011-0812-6_6

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