[Tallguy]

I won't say your wrong, but I'd like to add that the thing that hurt Boeing back in the early '70s was the collapse of the SST (Super Sonic Transport). Also, most of Boeing's airliner work prior to the advent of the 747 was subsidized by the USAF, ie. the 707 was developed in parallel with the KC-135.

[LM_Guy]

"most of Boeing's airliner work prior to the advent of the 747 was subsidized by the USAF"

What was the 727 developed in parallel with for the USAF?

[MHalblaub]

...but I'd like to add that the thing that hurt Boeing back in the early '70s was the collapse of the SST (Super Sonic Transport).

And I like to add:

On June 5, 1963, President John F. Kennedy formed the National Supersonic Transport program, which committed the government to subsidizing 75% of the development costs of a commercial airliner to compete with Concorde. (http://en.wikipedia.org/wiki/Boeing_2707)

[magellan]

"Also, most of Boeing's airliner work prior to the advent of the 747 was subsidized by the USAF, ie. the 707 was developed in parallel with the KC-135."

Actually, the Boeing 707, 727, and 747 were all "bet the company" decisions.

Boeing funded, designed, and built the jet transport prototype (the Boeing 367-80) on its own, then shopped it to both the airlines and to the Air Force.

The KC-135 was an unsolicited proposal.