Derived from Lockheed's design studies on a "Super Starfighter", the F-104S was one of the most capable of the F-104 series, and destined to be the last in service worldwide.

Externally, the new type had slightly larger air intakes and steel inlet guide vanes that allowed an increase in operating temperature from 121 to 175 °C (250 to 347 °F), enabling a maximum speed of Mach 2.2.

During the first five years in Italian service, 23 F-104G aircraft were lost; as only 80 to 90 F-104s (of 149 acquired) were operational at best, it was decided to purchase a new interceptor and fighter-bomber to reinforce front-line units.

The AMI mid-1960s "AW-X" (All-Weather-eXperimental) requirement for a new all-weather fighter aircraft led to an evaluation of many available types: the McDonnell Douglas F-4B/C Phantom, Dassault Mirage IIIC-1, BAC Lightning, and North American F-100S Super Sabre among others.

[6] The model was built in two versions; as an interceptor armed with AIM-7 Sparrow missiles (the M61 Vulcan being removed); and as a fighter bomber, with the gun retained and bombs and other air-to-surface ordnance.

Napoleone Bragagnolo, a test pilot for Aeritalia, was able to land at Ciampino, Rome, 19 minutes and 30 seconds after taking off from Turin in northern Italy.

Even with these new Starfighters, the loss rate remained high, with peaks in 1973 and 1975 (ten F-104s of all versions were lost in AMI service during this period).

Despite a drop in the loss rate in the 1980s (with 33 losses between 1981 and 1990 included), the debate about the reliability of this aircraft was often fierce in the mass media, which gave it the nickname bara volante (meaning "flying casket" in Italian, a translation of the similar German nickname Fliegender Sarg[7]).

[9] The last Italian F-104 was withdrawn from front line in 2004, after the type had flown around a million flying hours in a total of over 40 years of service.

These may have been a reward for good relations and Turkish technical assistance to improve the capabilities of the Libyan Air Force.

The F-104ASA (Aggiornamento Sistemi d'Arma, Weapon Systems Update), developed in 1986, introduced a FIAR R21G/M1 Setter radar,[11] with 'look-down' capability and compatibility with the Selenia Aspide missile.