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ANY fighter that does NOT use a Merlin in 1939/40 (unless it gets two Peregrines) is doomed to have lower performance than a MK I Hurricane.
Would a Whirlwind-sized fighter with 2 Kestrels will be too bad?
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When do you get 4 gun turrets?
When do you get Brownings?
What can you leave off The Blenheim in order to fit 8-12 forward firing guns and/or a 4 gun turret.
Or for a bit smaller plane the Fokker G 1
max speed 295mph with Mercury engines.
If you want to use lower powered engines than the 1st line planes and carry close to the same war-load and take-off in the same distance you need a bigger wing which will probably weigh more and have more drag. Before you start going on about high lift devices please remember that slats seldom, if ever, help with the take-off run and first use of Fowler flaps was on the Lockheed 14 (Electra) airliner which first flew in the summer of 1937. The high lift devices also add a bit of drag even when retracted so use was always a trade-off.
with lower powered engines you have to lighten it up to get get it of the ground in the required distance/s. You may need bigger tires. Landing speed in 1936/37?
Whirlwind use magnesium alloy rear fuselage skinning for better strength to weight ratio than aluminium skinning available at the time. The rest of it's construction was neither cheap or easy according to it's critics. Using lower powered engines in a simplified air-frame (for your export customers?) is going to result in a bigger airframe or a heavier one (or both).
Mercury or Dagger complete powerplant will weight some 500 lbs less than a complete Merlin III powerplant
The Fokker D.XXI managed with 174 sq ft wing, I'm not sure that Holland and Finland have had all paved runaways. The MS 406 also managed with 184 sq ft wing.
BTW the Dagger changed from a down draft carb on the III to an updraft carb on VIII. I don't know what those scoops on the MB2 are but the intake duct has got to be a bit twisted if they are the carb intakes.
The British were critically short of engineers and draftsmen. Many companies were forced to abandon proposed projects in order to concentrate on only a few projects in order to get them done in a timely fashion. Trying to design multiple 2nd rate aircraft in 1935-40 would have simply made things worse for the British.
Then you have the already mentioned engine problem, what was available and in what numbers. Kestrels were not "free" and Peregrines were not made out of ultraexpensium.
More Kestrels could only be had the "cost" of fewer Merlins.
Bristol was already working pretty much flat out building the Mercury and Pegasus with a dribble of sleeve valve engines. Where do additional Bristol engines come from?
The Dagger was a terrible engine.
Less said about the Armstrong Siddeley engines the better.
Wood construction is all over the place when it comes to weight. DH construction was about as good as it got. Some other companies could not build wooden structures anywhere near as light as metal structures. Yes wood construction requires different skill sets than metal but it also requires adequate supplies of the right kinds of wood, it requires proper glues. Japanese tried to build a wooden Ki 84, it came out 600lbs heavier than the metal one. The Bell XP-77 came out over-weight (Bell seemed to have a problem estimating weights no matter what the material). Air Ministry authorized the Armstrong Whitworth A.W.41 Albemarle to be part made of wood, it failed in part due to be being over weight for installed power. Bf 109s with wooden tail components got extra "armor" under the oil cooler to get the CG back in place.
British also have the propeller problem, Yes the Mercury got 2-pitch 3-bladed props fairly soon, Gloster Gladiators did not. Some Gladiators got metal fixed pitch 3 blade props.
If first line aircraft like Hurricanes and Spitfires were not getting getting good props until 1940 the chances of the 2nd line aircraft getting them were about zero.
This might very well be right for the Mercury, it is not right in regards to the Dagger. The Dagger III went 1285lbs. The Dagger VIII went 1390lbs but that may include the Napier provided airscoops on the top and bottom of the engine.
BTW the Dagger changed from a down draft carb on the III to an updraft carb on VIII. I don't know what those scoops on the MB2 are but the intake duct has got to be a bit twisted if they are the carb intakes.
The Fokker D.XXI carried 1/2 the armament of a Hurricane, The MS 406 weight of armament is also lower than a Hurricanes. And more importantly, neither could do the job. The British need aircraft that can take on the Germans flying Bf 109s. Planes that can take on the Russian airforce, especially in 1940 and 41 are NOT first line aircraft in the west at that time. They might have worked against the Italians. Sending them to the far east to fight the Japanese just means the Japanese pilots get provided more target practice.
You have said other places that the pilot was the most expensive piece of the whole equation. This is true even if it took the Air Ministry a while to realize it. However adding armor, self sealing tanks and BP windscreens to low powered planes hurts their performance even more than the high-powered planes. What are you going to do, use thinner armor on the pilot back plates of the lower powered planes? Smaller BP windscreens?
If you can't scale pilot protection (use only small pilots?) The protection becomes a bigger percentage of aircraft weight.
The engineers and draftsmen turned, in 1935-40, quite a few aircraft from napkin sketches into flying hardware. Just monoplane fighters: Vickers Venom, Bristol type 146, MB-2, two Glosters, plus 4 fighters that RAF accepted in service, plus Fulmar = ten designs. With bombers, transports, civil aicraft, hydro/flying boats, and other naval aircraft counted in, that is serious number of aircraft.
What will be a problem is turning the flying prototypes into mass produced aircraft, as you've noted. One of reasons I've mentioned a wooden fighter.
I'll like to return to the foreign countries trying to license produce the Hurricane: all was fine until there are Merlins to be purchased. Problems arose when that was not the case, Yugoslavs went to have DB 601A installed in their Hurris. A more widely spread engine in an airframe better suited for it avoids these problems.
The problem with Dagger VIII is that it was a lousy replacement for the Pegasus. In a bomber, it needed to go in emergency RPM and boost to beat Pegasus, while being 250 lbs heavier. We don't know how good the cooling was in 250 MPH bomber, vs. a 300 mph fighter. How much the max take off setting was used in a fully laden bomber, vs. a fully laden fighter? All these things can push the engine into overheating, let alone combined.
The tooling for Kerstrels was around for quite a few years, and some of it will not suit Merlin production, but will future Peregrine production.
A more emphasis on production of the 2-pich and variable pitch props might come in handy? Buy at Hamilton Standard? License production of those, either in UK or Canada? British were not shy to purchase licenses, from Farman's S/C drives to Bren/Oerlikon/HS/Bofors.
Under 'they managed' I've meant 'they managed to take off' - despite small wing and take off power. The MC 200 also managed, so did the Bf 109 versions with MF FF and Jumos.
Granted, the Fokker carried half of the armament, but extra 200-250 lbs worth of guns ammo does not sound like a reason for the wing area of 174 sq ft to grow 50%.
By 1941, the 'other' fighter can get the better engine, per 1st post here. So the Japanese (or other) cannot rack scores so easily.
One of remedies is to use more powerful engines as they became more available.