To keep costs in check, a single powerplant arrangement was agreed upon. This was made up of a Garrett (now Honeywell) TFE731-2-2J high-bypass, turbofan engine developing 3,550lbs of thrust - a powerplant more typical to business jets of the period. Performance numbers included a maximum speed of 480 miles per hour with a range out to 2,500 miles, and a service ceiling of 41,000 feet. Rate-of-climb neared 4,900 feet per minute. Not built as a speedy interceptor or dog-fighting mount, the C-101 held the power needed for its training and light attack roles.
When armed, the C-101 could be outfitted with a collection cannons, guns, rockets, and drop bombs (a later variant added support for air-to-surface missiles). In its ventral bay could be fitted a twin 12.7mm heavy machine gun arrangement or a single 30mm DEFA autocannon useful for ground-strafing actions. Three hardpoints were featured to each wing and these supported gunpods, cannon pods, rocket pods, and conventional drop ordnance.
The Spanish Air Force put in a requirement for eighty-eight dedicated trainer types to which it received its first during March of 1980 and these were all of the type added to the Spanish inventory for the life of the aircraft. The dual-purpose trainer/light strike model (C-101BB) was taken on by both Chile (as the "T-36") and Honduras in examples numbering 35 and 4 respectively and brought about use of a more powerful turbofan and ranging radar equipment. A third variant, the C-101CC - a dedicated light strike platform - was then sold to Chile (as the A-36 "Halcon" ("Hawk")) in 23 examples with a further 16 delivered to Jordan. Again the engine output was addressed, now outputting at 4,700lbs thrust.
In May of 1985, CASA unveiled a new take on the C-101 with its improved C-101DD product. The mark featured all-modern systems such as HUD (Head-Up Display), HOTAS (Hands-On Throttle and Stick) controlling, and improved weapons delivery/capability. Despite the added features, the product did not find any takers and was withdrawn.
Total production of all C-101 aircraft reached 166 examples. It has also served with the Spanish Air Force's Patrulla Aguila ("Eagle Patrol") aerobatics team. These debuted on June 4th, 1985 with the team based form San Javier Air Base.
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