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Why wasn't the Aero A.204 built?

Short answer

Because it lost its customer: it had been developed specifically for ČSA, but the national airline picked a British product instead, the Airspeed Envoy. With no buyer, Aero went on to develop a military version instead, the A.304. The A.204 had flown as a prototype in 1936.

Why wasn't the Aero A.204 built?
The King's Aeroplane, Airspeed Envoy (Dinky Toys 62k)Andy Dingley (CC BY SA), vía commons

An airliner designed for ČSA

The Aero A.204 was a Czechoslovak transport aircraft that flew as a prototype in 1936. It carried two nine-cylinder Walter Pollux IIR-2 radial engines of 270 kW (360 hp) each, geared 2:3. Its crew numbered two. Capacity was eight passengers.

The order went to the United Kingdom

It had been developed specifically for ČSA, but to Aero's surprise and disappointment, the national airline instead chose a British product, the Airspeed Envoy. The Czechoslovak carrier had ordered four Envoys to begin operations on 1 October 1935.

From airliner to military aircraft

Unable to find a customer, Aero instead began developing a military version, the A.304. That A.304 didn't start life as a military aircraft, but as the civil transport Aero A.204. In 1936, Czechoslovakia's Ministry of National Defence published specifications for a new military reconnaissance aircraft. Letov, Praga, and Aero entered the competition with the Letov Š-50, the Praga E-51, and the Aero A.304. Aero's design, created by Antonín Husník, won the competition and was selected for production.

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