In 1941, Curtiss-Wright was contracted by the United States Army Air Forces to design and construct an all-wood military transport aircraft, with performance specifications meeting or exceeding that of the Douglas C-47 Skytrain then in service. The Curtiss-Wright CW-27 was designed by Curtiss-Wright's chief designer George A. Page, Jr. as a high-wing, twin-engine, cargo transport aircraft, utilizing plywood construction with a tricycle undercarriage. Though the British de Havilland Mosquito had successfully employed a ply construction using a balsa wood core and birch hardwood exterior, Curtiss-Wright engineers, using research provided by Forest Products Laboratory, rejected this approach, insisting instead on a ply construction of dense mahogany, which greatly increased the plane's weight. At Curtiss' request, Army Materiel Command laid in large supplies of mahogany, and a number of furniture manufacturers, including the Baldwin Piano Company, were subcontracted to build components for the aircraft, which would be assembled at Curtiss-Wright's new defense plant in Louisville, Kentucky
The first flight of the YC-76 prototype took place on 3 May 1943. The C-76 proved severely underpowered from the start, with a cruising speed of 160 mph (260 km/h), a service ceiling of 22,600 feet (6,900 m), a range of only 750 mi (1,210 km), and a cargo capacity of under 8,000 lb (3,600 kg). Colonel J.W. Sessums, a USAAF officer at the Air Materiel Command at Wright Field, later related:
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The final disposition of the aircraft as of 1 October 1945, by letter of the Air Technical Service Command; 1-Washout upon delivery from factory, 5-Class 26, 10-Survey, 1-Condemned, 8-Reconstruction Finance Corp. to be sold as surplus.
As war priority measures designed to increase aluminum production proved successful, the feared shortage of light alloys never materialized.
On 10 May 1943, the first YC-76 constructed at the Louisville, Kentucky plant, 42-86918, lost its tail unit, due to a lack of securing bolts, during a test flight, crashing at Okolona, Kentucky, killing three Curtiss-Wright test crew