Chase Aircraft

Chase Aircraft Company

Company type	Private
Industry	Aerospace, Defense
Founded	1943
Founder	Michael Stroukoff
Defunct	1954
Fate	Purchased by Kaiser-Frazer, ceased operations
Successor	Stroukoff Aircraft
Headquarters	Trenton , United States
Area served	United States
Key people	Michael Stroukoff (Founder, Lead Designer), Henry J. Kaiser (Owner from 1951)
Products	Assault gliders, Military transport aircraft

The Chase Aircraft Company, established in 1943 by visionary entrepreneur and lead designer Michael Stroukoff, was an American manufacturer focused on assault gliders and military transport planes. Based in Trenton, New Jersey, the firm encountered growth constraints and was subsequently purchased by industrial magnate Henry J. Kaiser in 1951. Although initially awarded contracts, production of the C-123 transport aircraft for the United States Air Force ceased amid disputes, culminating in Chase's shutdown in 1953. Its successor, Stroukoff Aircraft, carried on with experimental aviation projects until 1959.

Early products

Originating in New York, New York, Chase introduced its inaugural design with the XCG-14 assault glider for the U.S. Army Air Forces, which first flew in 1945. The company moved to Trenton in 1946 to accommodate expansion and developed the XG-18—recognized as the first all-metal transport glider worldwide—representing a notable leap forward in military airlift technology.

By 1949, as combat gliders were becoming outdated, Chase transformed the XG-18 into the YC-122 Avitruc by installing radial piston engines. Despite producing three prototypes and a pre-production unit that received favorable evaluations, the Air Force shifted its priorities away from small transport aircraft, restricting further production. One YC-122 was later modified into the experimental Hiller X-18 tiltwing VTOL aircraft.

XG-20 and the first jet transport

The XG-20 was Chase’s largest assault glider and their final project in that category. With gliders losing relevance, Chase repurposed these designs into powered transports to meet changing military requirements. The initial XG-20 prototype was converted into the XC-123, equipped with twin radial engines, and underwent flight testing as a standard transport aircraft.

The second prototype was extensively modified by adding twin General Electric J47 turbojets mounted in bomber-style engine pods, resulting in the XC-123A—the first jet-powered transport aircraft produced in the United States—highlighting Chase’s innovative role and competitive edge in pioneering jet transport technology.

Kaiser and the pricing scandal

Although the XC-123A was not cost-effective, the XC-123 impressed Air Force officials, leading to an order for five pre-production C-123B units. Due to limited manufacturing capacity at Chase, 49% of the company was acquired by Kaiser-Frazer in 1951, which secured a contract to produce 300 C-123Bs at its Willow Run facility in Ann Arbor, Michigan. Following this acquisition, Chase operated as an engineering division with Stroukoff appointed chief engineer.

While Kaiser assembled the initial eight aircraft, United States Senate hearings scrutinized subcontracting practices connected to Kaiser’s work for Fairchild Aircraft. The production expenses for Kaiser’s C-119 planes were substantially higher than Fairchild’s—$1.2 million per unit compared to $260,000. Consequently, both C-119 and C-123 contracts held by Kaiser were terminated in June 1953, despite $30 million already invested in C-123 production preparation and an additional $40 million allocated for parts manufacture at Chase. The C-123 contract was subsequently re-awarded to Fairchild, under whose production the aircraft played a significant role during the Vietnam War.

Dissolution

Kaiser-Frazer acquired the remaining 51% stake in Chase Aircraft, integrating it as a subsidiary under Willys Motors; the transaction was finalized on September 2, 1953, subsequent to the termination of key contracts.

Following the loss of the C-123 contract, Kaiser-Frazer classified Chase as a non-essential holding and declared the company would cease operations as of January 31, 1954. Subsequently, Stroukoff purchased Chase's plant and assets, establishing Stroukoff Aircraft to pursue further development of experimental variants of the C-123.