Fairchild Aviation Corporation
Swearingen Merlin IIB

Straight-wing variants

The SA226-TC Metro was more-or-less a new design, conceptually a stretch of the Merlin II (which it superficially resembled) sized to seat 22 passengers. Prototype construction of the Metro began in 1968 and first flight was on 26 August 1969. The standard engines offered were two TPE331-3UW turboprops driving three-bladed propellers. A corporate version called the SA226-AT Merlin IV was also marketed and initially sales of this version were roughly double that of the Metro. These sales were not immediately forthcoming however, as the company was financially stretched by the development of the Metro prototype and lacked the funds to gear up for production. This situation was rectified in late 1971 when Ed Swearingen agreed to sell 90% of the company to Fairchild; the company was then renamed Swearingen Aviation Corporation.

By the end of 1972 six Merlin IVs had been built and production gradually built up alongside the concurrently produced short-fuselage Merlin III. In 1974, the original Merlin IV and Metro models were replaced by the SA226-AT Merlin IVA and the SA226-TC Metro II after about 30 Merlin IVs and about 20 Metros had been built. Among the changes made were larger, ovalised rectangular windows replacing the circular porthole-style windows of the early aircraft, and optional provision for a small Rocket-Assisted Take Off (RATO) rocket in the tail cone, this being offered to improve takeoff performance out of "hot & high" airfields. The same year the Merlin III was replaced by the SA226-T Merlin IIIA, with an extra window on the right side of the cabin and a small window aft of the airstair on each side of the fuselage. Customers for the Merlin IIIA included the Argentinian Air Force, the Argentine Army and the Belgian Air Force.