Hawker Siddeley HS 748 Paper ended most military manned-aircraft development in the UK, and Avro decided to re-enter the civilian market. The Vickers Viscount had the larger end of the short-haul market, and Avro therefore decided to design a smaller regional airliner powered by two Rolls-Royce Dart turboprop engines, intended to replace the many DC-3 Dakotas that were by then reaching the end of their economic lifespan. Original plans were for a 20–30 seat aircraft with a similar configuration to the Fokker F27, but talks with potential customers soon led to a low-wing 40-seat design being chosen for the 748 project. Avro was not
Vickers V-1000 on the overall project. Construction of the prototype was performed at Vickers' facility at Wisley Airfield, Surrey; flight trials would have also been based there. By November 1956, over £4 million had been spent on the V-1000 project; the first prototype had also reached 80 per cent completion. It had been estimated that the VC7 would have been in operational service as early as 1959, the same year in which the first V-1000s were projected to be delivered to the RAF. If it had entered commercial service as envisioned, it would have been the first turbofan-equipped airliner to serve long-haul