[3] It was designed to meet a requirement of the New York, Rio, and Buenos Aires Line (NYRBA) for an aircraft to serve the coastal routes in South America.

A parasol-wing version (the Model 20 Fleetster) was also developed with the wing supported by four short struts.

The open cockpit was moved behind the passenger cabin and the resultant space was used as a cargo compartment.

In 1932 a carrier-borne dive bomber version (Model 18) was evaluated by the United States Navy as the XBY-1, it was not ordered but was the first stressed-skin aircraft, and the first aircraft with so-called "wet wing" integral fuel tanks in the wings operated by the Navy.

One Model 20 Fleetster was operated by Western Canada Airways, the parasol wing version.