Convair: The Rise and Fall of an Aerospace Titan - Part 2

Welcome to Episode 18.

In this episode, Doug picks up the story from where we left off in Part 1: its November 1941, when Consolidated Aircraft founder Reuben Fleet decides to sell his personal stake in the company. Doug then shares how Consolidated became Convair, was then acquired by General Dynamics, its disastrous foray into the commercial jetliner market, and its eventual demise in the mid-1990s.

In This Episode

* (01:26) Reuben Fleet and his decision to sell Consolidated Aircraft.

* (03:43) Fleet sells his entire personal stake in 1941.

* (07:53) In 1943, Consolidated merges with Vultee Aircraft and becomes Convair.

* (09:51) Reasons behind the sale.

* (13:01) Rapid growth and decline of the aviation industry during and after World War II.

* (14:50) Floyd Odlum and Atlas Corporation acquire a significant stake in Convair.

* (16:04) Convair’s success in the 1950s.

* (17:40) The B-36 bomber's development during World War II and its features, including its long-range capabilities and large crew, are described.

* (20:01) General Dynamics acquires Convair in a two-step process.

* (25:56) Convair gambles with Howard Hughes and the development of the Convair 880 jetliner.

* Hughes runs into financial trouble and causes delays.

* Convair eventually declares the largest losses in business history in the early 1960s due to its failed efforts in the commercial jetliner business.

* (37:51) Henry Crown takes charge of General Dynamics to address losses from the Convair program.

* (38:35) Convair shifts focus and becomes a subcontractor for the big commercial jetliners and also concentrates on its rocket and missile businesses.

* (39:56) The defense industry consolidation in the post-Cold War era.

* (42:21) General Dynamics sells off pieces of its Convair business and eventually shuts it all down.

* (53:06) Reflection on Convair’s decline.

* (57:42) The difficulty for defense companies trying to venture into the commercial space.

* (65:14) Upcoming episodes.

Resources

Periodicals

* Convairiety - 1950s

* General Dynamics News - 1960s

* General Dynamics World

* Volume 21, Number 2, February 1991

* Volume 22, Number 1, April 1992

Articles

* “So They Named It General Dynamics”, Fortune, April 1953.

* “BOARDS APPROVE CONVAIR MERGER; General Dynamics to Step Up as Vast Defense Complex if Stockholders Concur”, NYT, March 2, 1954.

* “Intercontinental Rocket Reported Being Built”, NYT, Dec. 16, 1954.

* “SUPERSONIC B-58 FLIES FIRST TIME”, NYT, Nov. 12, 1956.

* “American Raises Jet order by 50”, NYT, 7/31/1958.

* “New Jet Passes Operation Tests; Convair 880 to Begin Flying Commercial Routes for Delta Line on May 15”, NYT, May 2, 1960.

* “Jet Purchase Plan of TWA Approved”, NYT, June 25, 1960.

* “CONVAIRS SLATED FOR T.W.A. LEASED; Northeast to Use Six Jets Idle Because of Hughes' Financial Problems”, NYT, Nov. 23, 1960.

* “The Plane Makers Under Stress”, Forbes, June 1960.

* “Defense Supplier Posts Loss for ‘60”, NYT, March 24, 1961.

* Smith, Richard Austin. “How a Great Corporation Got Out of Control: Part 1”, Fortune, January 1962.

* Smith, Richard Austin. “How a Great Corporation Got Out of Control: Part 2”, Fortune, February 1962.

* “Lewis of Dynamics”, Fortune, March 1962.

Books

* Sweetman, William. A History of Passenger Aircraft. London: Hamlyn Publishing, 1979.

* Steele, James B. Howard Hughes: His Life and Madness. New York: W.W. Norton, 1979

Videos and Podcasts

* “The Story of Willow Run” — Building the B-24 bomber during WWII

* Convair CV-440 Metropolitan Promo Film - 1955

* CONVAIR B-36 - Story of the Strategic Air Command's Masive Cold War Peacemaker!

* “ON TARGET: THE ATLAS ICBM” — 1958 Convair Astronautics SM-65B Missile Launch documentary

Additional Reading

* Doug (Andvari’s Substack) writes more about Reuben Fleet in his post “Quality Over Quantity”, published December 2024.

* Doug (Andvari’s Substack) also wrote Victor Emanuel of Aviation Corporation in his post “Victor Emanuel: Part 1, From Gilded Age Dealmaker to Turnaround Artist”, published January 26, 2025.

* Devin (Invariant Substack) writes about the FY2024 results of Philip Morris in “Philip Morris International: Conquest”.

* Lawrence (Fortune Financial) writes about “Exploring the Surprising Resilience of the Defense Industry”.

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