The KD-1A was a slightly modified KD-1. An engine driven generator and an electric engine starter were added. The fuel tankage was reduced from 44 to 30 gallons. Seven of these were sold to the U.S. Army Air Corps as Model YG-lB.
They were stationed at Ft. Bragg to train pilots as artillery spotters and to carry out other liaison missions. On one occasion a pilot talked over a telephone line that had been dropped to the ground through an Army switchboard to a general in his office.
Two were bailed back to Kellett for developmental work. One was designated the XR-2 and the other XR-3. The remaining five were given to the border patrol for Texas/Mexico border surveillance. They were declared surplus and drifted around Texas and Arizona. One found its way to Canada where Atlas Aviation wanted to use it for towing advertising banners. The author "taught" their pilot to fly it by telephone, and he made a successful solo flight. It was sold to the Leavans Brothers of Canada and, while in their possession, it was destroyed by fire following a takeoff accident.
In 1960 Kellett found one of the YG-1B's and two engines in Phoenix, Arizona. They bought them for parts to use as backup for the KD-1A that they were demonstrating.
G.Townson "Autogiro. The Story of the Windmill Plane", 1985