Boeing 747
Thanks in part to tourist/economy class, more and more Americans were taking to the skies. To take advantage of this rise, Trippe wanted a plane with a larger seating capacity - 2.5 times that of the 707.
Trippe struck an agreement with Bill Allen, president of Boeing. Although Allen casually agreed to the project while on a fishing trip, he would soon realize that it was no casual undertaking.
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“If you build it, I’ll buy it,” Trippe told Allen, who replied: “If you buy it, I’ll build it.” — Jet Age: The Comet, the 707, and the Race to Shrink the World by Sam Howe Verhovek
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To build the 747, Boeing had to clear acres of land and construct new facilities. The project was so expensive it nearly bankrupted the company.
Trippe was also willing to invest a lot into the project. In April 1966, he signed a purchase agreement for 25 aircraft, worth a total of $525 million.
When Pan Am placed an order for twenty-five 747 jet airliners, Boeing had no such widebody jet. [. . .] For the 747 development program, Pan Am engineers were partnered with Boeing personnel to create an airliner meeting the airline’s needs essentially from scratch.
— John Hill, E-mail interview
(National Archives)
Thankfully, the 747 was a huge success. Just like with the 707, Trippe’s purchase sparked a great number of orders from other airlines. A few months after he signed the agreement, a total of 93 airlines had ordered the 747, collectively paying $1.8 billion.
The capital outlay and commitment Pan Am made to Boeing in ordering the 747 was a risk in that a successful 747 development program would then rely to a great extent on other airlines wishing to compete following suit by placing subsequent orders and thus adequately financing the program. Needless to say, such orders were placed in rapid succession.
— John Hill, E-mail interview
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