The CBY-3 "
lifting fuselage" was an evolution of the earlier
Burnelli UB-14. Burnelli worked as a designer at
Canadian Car and Foundry (CanCar) in
Montreal, and the CBY-3 was intended for
bush operations in northern Canada. The sole
prototype was extensively tested but failed to gain a production contract. Burnelli had a lifelong career devoted to exploiting the advantages of the lifting body airfoil concept that characterized many of his earlier aircraft designs. His last design, the CBY-3 was manufactured by CanCar in
Montreal, but ownership reverted to Burnelli, when the CBY-3 was unable to gain a production contract. The name of the aircraft, CBY-3, was derived from the name of the three partners involved in its creation: CanCar, Burnelli and
Lowell Yerex and "3" from the number of partners involved. Lowell Yerex was a
New Zealander who had formed
TACA –
Transportes Aéreos Centroamericanos (Central American Air Transport) in
Honduras in 1931, and joined the project when Burnelli convinced him that the CBY-3 could be used as both a cargo and passenger aircraft. A follow-up design in 1942 for the CC&F B-1000, a bomber using the same lifting body principles, remained a "paper project". ==Operational history==