The first decade
The origin of the aerospace industry dates to 1903 when Wilbur and Orville Wright demonstrated an airplane capable of powered, sustained flight (see Wright flyer of 1903). The Wright brothers’ success was due to detailed research and an excellent engineering-and-development approach. Their breakthrough innovation was a pilot-operated warping (twisting) of the wings to provide attitude control and to make turns. Patents with broad claims for their wing-warping technology were granted in Europe in 1904 and in the United States in 1906. The French government was the first to negotiate with the Wright brothers for the sale of their patents for 1,000,000 francs, with a deposit of 25,000 francs for the option, which was later forfeited. The first recorded business transaction of the aerospace industry occurred in May 1906 when J.P. Morgan and Company in New York City paid the Wright brothers the forfeited deposit. The first sale of a military aircraft was made on February 8, 1908, when the Wright brothers contracted to provide one Model A flyer (see Wright military flyer of 1909) to the Signal Corps of the U.S. Army for $25,000, with a $5,000 bonus should it exceed the speed requirement of 40 miles (65 km) per hour. The following year the aircraft successfully completed qualifying trials for completion of the sale, which included the bonus.
In March 1909 the British entrepreneurs Eustace, Horace, and Oswald Short purchased a license to produce six Wright flyers and set up the company Short Brothers Limited on the Isle of Sheppey, establishing the world’s first assembly line for aircraft. In the same year the American aviation pioneer Glenn Curtiss joined the list of airplane producers and made the first commercial sale of an aircraft in the United States. In France, Henri Farman, Louis Blériot, Gabriel and Charles Voisin, and Léon Levavasseur entered the industry, and experimental groups started airplane production in Germany and Russia. When Blériot crossed the English Channel in July 1909 in his Blériot XI monoplane, the ensuing fame resulted in worldwide orders for more than 100 aircraft.
In 1909, when the Wright Company was incorporated with a capitalization of $1,000,000, the Wright brothers received $100,000, 40 percent of the stock, and a 10 percent royalty on every plane sold. The company developed extensive financial interests in aviation during those early years but, counter to the recommendations of its financiers, did not establish a tight monopoly.
By 1911, pilots were flying in competitive races over long distances between European cities, and this provided enormous incentives for companies to produce faster and more reliable aircraft. In 1911–12 the Wright Company earned more than $1,000,000, mostly in exhibition fees and prizes rather than in sales. French aircraft emerged as the most advanced and for a time were superior to those of competing countries. All planes built in this early period were similar in construction—wings and fuselage frames were made of wood (usually spruce or fir) and covered with a coated fabric.
World War I
France and Germany, both aware of the military potential of aircraft, began relatively large-scale manufacturing around 1909. By the outbreak of World War I in 1914, France had built a total of 2,000 airplanes, of which 1,500 were military; Germany ranked second with about 1,000 military aircraft; and Britain a distant third with 176. The United States lost its lead in aeronautics as the combined civil and military market for American airplanes was insufficient to permit the industry to grow significantly; only 49 aircraft were produced in 1914. In addition, patent rights remained a major difficulty for the industry. Recognizing a national need to advance aircraft technology independently, the U.S. Congress created the National Advisory Committee for Aeronautics (NACA) in March 1915.
French industry, assisted by rapidly expanding facilities in Great Britain, carried the production load of the Allies during the war. When the United States entered the war in 1917, however, the French government requested that it furnish more than 4,000 planes for active service by early 1918. To meet the demand, including that of the U.S. Army, the U.S. government and American aircraft manufacturers entered into a patent-licensing agreement on July 24, 1917, and formed the Manufacturers Aircraft Association, which allowed its members the use of patents for a fixed royalty fee.
Because American aircraft manufacturers and suppliers had no experience in large-scale production, the government enlisted automobile manufacturers to mass-produce engines and airplanes. For its own use the U.S. Army ordered the production of the two-seat British De Havilland DH-4 bomber and the American-designed Curtiss JN-4 Jennie trainer. By the end of the war 4,500 DH-4s had been built in the United States, 1,213 of which were shipped to Europe. Although American production was too late to matter militarily, by the 1918 Armistice American factories were capable of producing 21,000 planes per year. Worldwide 210,000 aircraft were produced from 1914 to 1918. In the United States the greatest success of wartime production was the very advanced 12-cylinder, water-cooled, 400-horsepower Liberty engine, developed for the DH-4.