Gustav Otto Flugzeugwerke, founded in 1910 by Gustav Otto, was one of the pioneering aircraft producers at the turn of the 20th Century. It was merged into BFW, the company that eventually became BMW AG.
In 1910, Gustav Otto founded the "Aeroplanbau Otto-Alberti" workshop at the Puchheim airfield, where Gustav, along with a few others, flew machines made of wood, wire, and canvas and were powered by an engine.[1] Through their passion for these flying machines, they helped transform aviation from a do-it-yourself hobby to a genuine industry vital to the military, especially after the breakout of World War I. Interestingly, Ernst Udet, the second highest scoring German flying ace of World War I (second only to the Red Baron), earned his pilots license from private training with Gustav during this time.[2]
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In 1911 Gustav moved the company and renamed it "Gustav Otto Flugmaschinenfabrik". The official entry appears as No. 14/364: "Gustav Otto in Munich, flying machine factory, office at 72 Karlstrasse." Shortly afterwards, Otto moved the workshop from its original location at 37 Gabelsberger Strasse to new premises at 135 Schleissheimer Strasse.
In 1914 construction started on a new factory at 76 Neulerchenfeldstrasse (later Lerchenauer Strasse). Gustav moved the company to the new factory on Lerchenauer Strasse just east of the Oberwiesenfeld troop maneuver area in the Milbertshofen district of Munich (This area later became Munich's first airport). He wanted to be closer to the German government's procurement process for military sale. In 1915, the company is again renamed to "Gustav Otto Flugzeugwerke". Shortly thereafter, Otto established another company named AGO Flugzeugwerke at Berlin's Johannisthal Air Field.
While the designs by Gustav Otto were initially successful, he was continually experiencing problems related to cost-effective production, as well as generating profits. At the start of the war, Otto-Flugzeugwerke was supplying the German Air Force, but as the war progressed so did production problems. Eventually, the government agencies urged the company to nationalize its production. The stress of wartime and ongoing financial problems with the company proved too great a burden for Gustav, who suffered health issues. At the insistence of the Bavarian and Prussian War Ministries (and in particular the Inspectors of the Engineering Corps) the unprofitable aircraft manufacturer was taken over by the German Government, and Gustav Otto was forced to resign from his company. A consortium of banks took over the assets of the company and incorporated them into Bayerische Flugzeugwerke AG on 19 February 1916.
Gustav Otto turned his attention to Otto-Werke Flugzeug-und Maschinenfabrik GmbH, which was founded (1 February 1916) just prior to Otto-Flugzeugwerke being taken over by the consortium. The two companies were not connected in any way.
In the summer of 1916 13 Otto C.I twin-boom aircraft were delivered to the Bulgarian Air Force [3].
[3] Yordan Milanov: The aviation in Bulgaria in the wars from 1912 to 1945, Vol.I. Sveti Gueorgui Pobedonosetz, Sofia, 1995 (in Bulgarian)
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