With the Allied air campaign coming into its own, the German war machine suffered mightily with each advancing month and programs like the Fa 223 were severely disrupted as a result. The Fa 223 plant at Delmenhorst was destroyed in a June 1942 bombing raid and forced the production lines to relocate to Laupheim for 1943. This also allowed development to continue and progress showcased an aerial system with lift power akin to a medium-class hauler today. In early 1944, two prototype Fa 223s were successfully used in the recovery of a downed Dornier aircraft along a mountainside - further promoting the capabilities of the machine and of vertical flight in general. Several helicopters were then set aside for training in mountain warfare tasks because of this exercise. In July of 1944 yet another Allied bombing sortie stopped Fa 223 production which delayed further work until lines were reestablished in Berlin where better protection from air attack could be had.
1944 had become a turning point in the war for the Allies which placed the German war initiative into sheer desperation during the early part of 1945. Measures were taken to keep the aircraft from falling into enemy hands during the Allied advance on Berlin but some examples were overtaken during the German retreat. At least two fell to the United States Army and were dissected at length. The war in Europe was over in May of 1945 as attention then turned to the Pacific Theater and the Japanese Empire. An Fa 223 (prototype V14) was flown from Cherbourg in France to Beaulieu in England during September of 1945 marking the first helicopter crossing of the English Channel in aviation history.
The Fa 223 certainly had the potential to make a wartime impression had the program gestated longer than it was allowed to. The Luftwaffe and Kriegsmarine both saw a multirole-minded platform and several prominent variants were initially entertained: Fa 223A was to serve in the Anti-Submarine Warfare (ASW) role while carrying either 2 x 550 lb bombs or a pair of depth charges. Fa 223B was to be a reconnaissance-minded mount with additional fuel stores aboard for improved ranges. Fa 223C was to be a dedicated Search and Rescue (SAR) platform outfitted with a winch system. Fa 223D was envisioned as dedicated cargo hauler for mountain service. Fa 223E was to represent the dual-control trainer variant.
The most distinct proposed product of the entire Fa 223 line was to become the Fa 223Z (Z = "Zwilling", or "Twin") mating two Fa 223 helicopters to become a four-rotor heavy-lift system. This product was only partially finished before the end of the war, its incomplete shell falling to the Allied advance at Ochsenhausen in southern Germany. The Fa 223 only saw formal operational service with Transportstaffel 40 of the German Luftwaffe during World War 2.
The Fa 223 saw a short-lived post-war service life with both France and Czechoslovakia. The French Air Force operated one example under the "SE-3000" designation with assembly by Sud-Est. Czechoslovakia took on two examples and knew them as "VR-1" with assembly by CZL (Avia). These operated until 1946 as far as is known.
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