During early 1977, the Italian Air Force issued a requirement for 187 new-build strike fighters, which were to replace its existing Aeritalia G.91 in the close air support and reconnaissance missions, as well as the Lockheed RF-104G Starfighter also being used in the reconnaissance role. Rather than competing for the contract, Aeritalia (now Alenia Aeronautica) and Aermacchi agreed to produce a joint proposal for the requirement, as both firms had been considering the development of a similar class of aircraft for some years. During the early 1970s, Aermacchi had been conducted work on a design study for such a light ground attack aircraft under the designation of "MB-340". In April 1978, development work on the joint venture formally commenced.