KC-135 Family Tree
The origin and development of the KC-135 we interwoven with that of the 707. Around 1940/1950 Boeing had begun work on a new commercial jet transport which was a variation to the Model 367 (C-97/KC-97 to the military, Boeing 377 to the airlines), During 1951 Boeing proposed a tanker variation of a jet powered version of the Model 367 to the Air Force. This was turned down due to a financial commitment to an operational fleet of B-47s and KC-97s and its projected acquisition of a fleet of B-52s precluded any commitment to a new tanker effort.
Dispite this, Boeing went on to produce an entirely new airplane, the Model 367-80. In 1952 Boeing approved $15 million of company funds for further development and construction of a prototype. This airplane was now designated Model 707. Boeing kept it under wraps and referred to it only as the Boeing 367-80.
As a military venture, the as-yet identified airplane would function as a jet transport and tanker. Construction of the 367-80 prototype began in 1952. As the roll-out neared, Boeing's President William M. Allen said, "Boeing's first consideration was the nation's security. Boeing's principal aim was to fill what it considered a military need. At the same time, and in the commercial interest, we believed Americal should no longer delay getting into the jet field."
On 15 May 1954 the 'Dash 80' was rolled-out and it was christened by Mrs William E Boeing with two bottles of champagne, one for each of the two names the airplane bore: Stratoliner for its commercial uses and Stratotanker for its military operations.
About this same time, the Air Force began to evaluate the Air Force requirement for a jet tanker, finally achknowleging Boeing's foresight of just such an airplane.
In July 1954, with a tanker competition well underway, the USAF purchased 70 to 100 'interim' tankers, specifically the Boeing 367-80 tanker proposal which Boeing now called the 367-138B and would later redesignate as the Model 717. This became the KC-135A, and Boeing later won the full contract.
At the same time, Boeing was developing the commercial side of the 'Dash 80' which would become the model 707. The first 707 was scheduled for completion concurrently with the 100th KC-135.
Reference:
Boeing KC-135 Stratotanker: More than just a tanker by Robert S. Hopkins III