The MD Helicopters MD 500 series is an American family of light utility civilian and military helicopters. The MD 500 was developed from the Hughes 500, a civilian version of the US Army's OH-6A Cayuse/Loach.
The successful Hughes 500/MD 500 series began life in response to a U.S. Army requirement for a Light Observation Helicopter(LOH). Hughes' Model 369 won the contest against competition from Bell and Hiller. The subsequent OH-6 Cayuse first flew in February 1963.
The 500 series design features shock-absorbing landing skid struts, a turboshaft engine mounted at a 45-degree angle toward the rear of the cabin pod, a fuel tank cell under the floor and the battery in the nose. The engine exhaust port is located at the end of the cabin pod underneath the tailboom. It has a short-diameter main rotor system and a short tail, giving it agile control response and is less susceptible to weather-cocking.
Hughes won the U.S. Army's LOH contest with its OH-6 helicopter by submitting a very low and aggressive price per airframe (without an engine). Due to rising prices, the U.S. Army later re-opened the contest, where Hughes offered the machine at a more realistic price, but was undercut by the redesigned Bell OH-58 Kiowa (military JetRanger). OH-6 helicopters were still ordered by the U.S. Army, though at a much reduced number.