Before being purchased by the Army, LZ 3 made many flights and carried a number of influential passengers, including the German Crown Prince.

A large vertical fin was added above the stern of the hull and new engines, each providing 105 hp (78 kW) were fitted, giving a maximum speed of (27.5 mph)[3] LZ 3 was first flown on 9 October 1906, when a successful flight was made lasting 2 hours 17 minutes and carrying eleven people.

Following modifications to the control surfaces LZ 3 was next flown on 24 September 1907, when it made a flight lasting 4 hours 17 minutes, and a series of successful flights was made in the following days, including one on 30 September lasting 7 hours 54 minutes during which it was flown over land for the first time, flying north as far as Ravensburg.

On 14 December the floating hangar broke loose from its moorings during a storm and was driven ashore, severely damaging LZ 3.

[6] The renamed Z I's military crew and ground staff, commanded by Major Sperling, arrived at Friedrichshafen in March 1909 to begin training.