The small Peto was designed to operate from submarines. The aircraft was housed in a waterproof hangar and catapulted over the bow. After the aircraft alighted next to the sub, a crane would lift it back on deck. Tested on the sub HMS M2 until N181 was damaged at Gibraltar. It was rebuilt with several improvements and given the new serial N255. Lost with HMS M2 and all its 60 crew on January 26, 1932. The sub and plane were left on the bed of Lyme Bay after a failed salvage attempt. A second Peto, N182, crashed in 1930. Photo from: Air Force Museum of New Zealand