The aircraft served both offensive and defensive purposes. It could locate merchant shipping by signs such as smoke while sweeping farther ahead for hostile cruisers. That wider view helped the raider pursue soft targets without approaching an unseen warship. The earlier HMS Cumberland episode showed why advance warning of a cruiser mattered.
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The Arado's offensive and defensive scouting roles
The Arado helped Graf Spee find merchant targets while also searching ahead for Royal Navy cruisers that could threaten the raider.