Arado Flugzeugwerke design team, led by Eng. Rethel, received an order for a two-seat training aircraft designated Arado Ar 66. The machine was a biplane of mixed construction. As a result of Eng. Rethel’s departure to the Messerschmitt company, the development of this type of aircraft was taken over by graduate engineer Walter Blume. The first Ar-66a prototype was flown in 1932.The aircraft was powered by an Argus AS 10C engine with 176 kW (240 hp). The second land prototype was designated Ar 66c and was essentially similar to the Ar 66a, with most production aircraft later designated Ar 66C.
The second prototype in the sequence, and the first seaplane, was the Ar-66b powered like the other two, by an Argus AS 10C engine, equipped with two wooden floats. A total of 10 serial copies of the Ar66 B were produced in 1933, but the machines did not enter service with any naval aviation units. In 1933, serial production of the Ar-66C version began. This aircraft became one of the Luftwaffe’s most popular training aircraft, serving it until the end of the war. The Ar 66C found its way into the equipment of pilot schools: FFS A/B4, FFS A/E 11, FFS A/B 23 and FFS A/B 116.
As a result of the creation of the so-called Störkampfstaffeln (light night bomber squadrons) in the Luftwaffe, modeled on the Soviet night bomber units equipped with Po-2 or R-5 aircraft, the Arado 66Cs began to serve as night bomber aircraft. On 7.10.1943, the Störkampfstaffeln were renamed Nachtschlachtgruppen.