In 1958, prior to full-time production, Hughes provided five preproduction Model 269 examples to the U.S. Army for evaluation as a light observation helicopter to replace the aging OH-13 Sioux and OH-23 Raven. Designated as the YHO-2HU the helicopter was eventually turned down. 9 April 1959, the 269 received certification from the FAA and Hughes continued to concentrate on civil production. With some design changes, deliveries of the Model 269A version began in 1961. By mid-1963 about 20 aircraft were being produced a month and by the spring of 1964, 314 had been built.