In 1996, Kazan Helicopters delivered an Mi-17 (construction number 226M205, Registration RA-70877) to Kelowna Flightcraft of Canada in order for a glass cockpit to be installed.
It was planned to certificate the Mi-17KF according to the FAA Standard Airworthiness Certification Regulations Part 29 and to ma˙ fa??ure modification kits for installation in new-build and existing aircraft.
First flight took place on 3 August 1997 and was followed by prototype test flights. The Mi-17KF was unveiled at Air Show Canada 1997 which took place at Abbotsford in August 1997.
Programme consists of the Honeywell-designed EDZ 756 Flight Deck including the following equipment: FZ-706 Flight Director System, Electronic Flight Instrument System (EFIS), AA-300 Radio Altimeter, Primus 700 Weather Radar, Primus II Nav/Comm/Audio System, AV-850 Audio Panel, UNS-1L Flight Management System (FMS) with the Attitude/Heading Reference System (AHRS) and the KHF 950 HF/SSB Radio.
Optional equipment which can be added by customer request include floatation system providing 30 minutes of buoyancy, external cargo sling with 11,000 lbs capacity, external winch at left hand entry door with 650 lbs capacity, auxiliary fuel tanks increasing range to 670 nautical miles, Night Vision Goggle compatible cockpit, Doppler Navigation System and Global Positioning System.
There had been speculation that Kelowna Flightcraft would offer the Mi-17KF within the Canadian Search and Rescue Helicopter Project announced on 8 November 1995; however, this bid was not made, chiefly because the Mi-17KF certification was not realized.
In 1999 the prototype was reportedly converted into another Mi-17 demonstrator.