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===Reestablishment=== Bayerische Flugzeugwerke (BFW/Bavarian Aircraft Works) was reformed in 1926, in [[Augsburg]], [[Bavaria]], when [[Udet Flugzeugbau|Udet Flugzeugbau GmbH]] was changed into a joint-stock company. In the early stages, BMW AG held a stake in this company and was represented by [[Josef Popp]], who held a place on the Supervisory Board.<ref>BMW Historical Archives www.BMWgroup.com</ref> [[Willy Messerschmitt]] joined the company in 1927 as chief designer and engineer and formed a design team. One of the first designs, the [[Messerschmitt M20]], was a near-catastrophe for the designer and the company. Many{{citation needed|date=January 2017}} of the prototypes crashed, one of them killing Hans Hackmack, a close friend of [[Erhard Milch]], the head of [[Deutsche Luft Hansa]] and the German civil aviation authorities. Milch was upset by the lack of response from Messerschmitt and this led to a lifelong hatred towards him. Milch eventually cancelled all contracts with Messerschmitt and forced BFW into bankruptcy in 1931. However, Messerschmitt's friendship with [[Hugo Junkers]] prevented a stagnation of the careers of him and BFW, which was started again in 1933. Milch still prevented Messerschmitt's takeover of the BFW until 1938, hence the designation "Bf" of early Messerschmitt designs. Messerschmitt promoted a concept he called "light weight construction" in which many typically separate load-bearing parts were merged into a single reinforced firewall, thereby saving weight and improving performance. The first true test of the concept was in the [[Messerschmitt Bf 108|Bf 108]] ''Taifun'' sports aircraft, which would soon be setting all sorts of records. Based on this performance the company was invited to submit a design for the [[Luftwaffe]]'s 1935 fighter contest, winning it with the [[Messerschmitt Bf 109|Bf 109]], based on the same construction methods. From this point on Messerschmitt became a favorite of the [[Nazism|Nazi]] party, as much for his designs as his political abilities and the factory location in southern Germany away from the "clumping" of aviation firms on the northern coast. BFW was reconstituted as "Messerschmitt AG" on 11 July 1938, with Willy Messerschmitt as chairman and managing director. The renaming of BFW resulted in the company's [[RLM aircraft designation system|RLM]] designation prefix changing from "Bf" to "Me" for all newer designs that were accepted by the RLM after the acquisition date. Existing types, such as the Bf 109 and 110, retained their earlier designation in official documents, although sometimes the newer designations were used as well, most often by subcontractors, such as Erla Maschinenwerk of [[Leipzig]].{{citation needed|date=May 2013}} In practice, all BFW/Messerschmitt aircraft from the Bf 108 four-seat touring monoplane, to the Bf 163 light observation aircraft (which competed unsuccessfully for the government contract won by the rival [[Fieseler Fi 156]] design) were prefixed "Bf", all later types with "Me".
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