Designed by Husnik and Vlasak, it was of conventional biplane configuration. The orthodox two spar upper wing was straight, without dihedral and constructed in one piece, was supported above the fuselage on two sets of outward sloping N struts and an inverted V cabane. The lower wing was in two sections attached to stub 'winglets' on the fuselage. Top and bottom planes were separated by one built up strut of [ formation with the main upright of the strut between the rear spars of the wings and the 'feet' pointing forward and attached to the front strut. Balanced ailerons were fitted to the top wing only operated by a rod and tubular hinge mechanism, rather than the more usual cables. A lifting cantilevered tailplane was fitted with divided and balanced elevators and the triangular tail fin carried a balanced rudder. The fuselage was designed to be built in Duralumin, but the prototype used welded steel tube. It was of approximately rectangular section with slightly convex panels all round and was internally wire braced. An auxiliary petrol tank of aerofoil section was mounted between the wheels and could be jettisoned by means of a quick release mechanism. The aircraft's performance was adequate for a fighter of its day, but the Czechoslovak Air Force was not interested in purchasing it.
Flown by Josef Novak, the Ae 02 went on to win the Silver Cup at the Czech Aeroclub's annual flying meet of 1921 for best overall performance. Development continued as the Ae 04.