It was a scaled-up version of the CASA C-202 Halcón and was designed for the domestic civil market.

Ten more aircraft were ordered and configured for paratroop or cargo transport, designated CASA 207C(T.7B).

The CASA 207 was developed as an airline-suited aircraft, for the short- to mid-range routes that were common in Spain and Europe.

The Azor was deemed to be obsolete and uneconomical for its time and standards, for which better aircraft were available for its role.

So, CASA turned its marketing attention to the Spanish Air Force, which had interest in a "modern" transport aircraft.