In 1913, after selling 47 aircraft to the Bavarian Army, Otto opened a factory "Otto-Flugzeugwerke" on Lerchenauer Strasse just east of the Oberwiesenfeld troop manoeuvre 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. However, he was not skilled at the politics and payoffs necessary when dealing with the Bavarian war ministry and Prussian Army. Unable to navigate these politics while leaving his pride and integrity intact deeply troubled him.