Originally designated the SF340, the aircraft first flew on 25 January 1983. When Fairchild exited the aircraft manufacturing business in 1985 after about 40 units, Saab dropped the name Fairchild from the project and continued aircraft production under the designation Saab 340A and 159 A models were built. An improved version, the second generation 340B, introduced more powerful engines and wider horizontal stabilizers in 1989 and the later 340Bs also had an active noise control system. 200 aircraft were built. The final third generation version, the 340B Plus, was delivered for service in 1994 and incorporated improvements that were being introduced at the same time in the Saab 2000. 100 aircraft were built adding up to a total of 300 B models. The Saab 340 typically seated between 30 and 36 passengers, with 34 seats being the most common configuration. The last two 340s built were constructed as older configuration 36-seat aircraft for Japan Air Commuter. One of the improvements introduced in the 340B Plus was the installation of an active noise and vibration control system in the cabin, reducing noise and vibration levels by about ten dB during cruising flight. This optional feature carried over from the 340B was standard in the 340B Plus along with extended wingtips which was an option on the 340B, about 30 aircraft having the WT option. Another change from earlier models was a more modern interior design and the moving of the lavatory compartment from the aft of the passenger cabin to just aft of the flight deck in most 3rd generation units. This increased total available cargo volume as the original location intruded into the cargo bin area. While the active noise control became standard on all Saab 340Bs in 1994 the first-ever 340B Plus (third B+ built) was delivered new to Hazelton Airlines in Australia in 1995, later operating for Regional Express, and currently for the Japanese Coast Guard.
