<P> In 1933, the Boeing 247 was introduced, the first truly modern airliner . The 247 was an all - metal low - wing monoplane that was much faster, safer, and easier to fly than other passenger aircraft . For example, it was the first twin engine passenger aircraft that could fly on one engine . In an era of unreliable engines, this vastly improved flight safety . Boeing built the first 59 aircraft exclusively for its own United Airlines subsidiary's operations . This badly hurt competing airlines, and was typical of the anti-competitive corporate behavior that the U.S. government sought to prohibit at the time . </P> <P> The Air Mail Act of 1934 prohibited airlines and manufacturers from being under the same corporate umbrella, so the company split into three smaller companies--Boeing Airplane Company, United Airlines, and United Aircraft Corporation, the precursor to United Technologies . As a result, William Boeing sold off his shares and left Boeing . Clairmont "Claire" L. Egtvedt, who had become Boeing's president in 1933, became the chairman as well . He believed the company's future was in building bigger planes . Work began in 1936 on Boeing Plant 2 to accommodate the production of larger modern aircraft . </P> <P> Shortly after, an agreement with Pan American World Airways (Pan Am) was reached, to develop and build a commercial flying boat able to carry passengers on transoceanic routes . The first flight of the Boeing 314 Clipper was in June 1938 . It was the largest civil aircraft of its time, with a capacity of 90 passengers on day flights, and of 40 passengers on night flights . One year later, the first regular passenger service from the U.S. to the UK was inaugurated . Subsequently, other routes were opened, so that soon Pan Am flew with the Boeing 314 to destinations all over the world . </P> <P> In 1938, Boeing completed work on its Model 307 Stratoliner . This was the world's first pressurized - cabin transport aircraft, and it was capable of cruising at an altitude of 20,000 feet (6,100 m)--above most weather disturbances . It was based on the B - 17, using the same wings, tail and engines . </P>

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