[1][2][3] The Observer's design aim was long endurance with minimal fuel burn, combined with extremely good vision from the cockpit.

To obtain this, the conventional tractor propeller is driven by a mid-mounted engine placed behind the two side-by-side seats.

This location for the power-plant was intended to leave the nose clear of obstruction.

Since the canopy glazing extends to the crew's feet, vision was expected to be far better than from a conventional aircraft, and not far from that from some helicopters.

The project was not realized due to financial dispute with his former Austrian partner Hoffmann Aircraft and subsequent failure of finding a manufacturer for the H38 (as well as for the H40).