In April 1999, the Spanish Air Force became its launch customer with an order for nine military-configured C-295s; two years later, the type was declared operational with the service.

Both manufacturing and final assembly of the C-295 is normally performed at the Airbus Defence and Space facilities in San Pablo Airport, located in Seville, Spain.

Since 2011, Indonesian Aerospace has produced the CN-295 under license at their facilities in Bandung, Indonesia, via an industrial collaboration with Airbus Defence & Space.

[4] During 2021, it was agreed that, as a part of a larger purchase, a batch of 40 C-295s for the Indian Air Force would be license-manufactured in India by Tata Advanced Systems,[5] at its facility in Vadodara, Gujarat.

These include parachute and cargo dropping, electronic signals intelligence (ELINT), medical evacuation (MEDEVAC), and maritime patrol.

The C-295 has been acquired by multiple nations including India, Spain, Egypt, Poland, Canada, Brazil, Mexico, Portugal, Ireland and others.

It was derived from the CASA/IPTN CN-235, a Spanish–Indonesian transport aircraft; its principal differences were its stretched fuselage, a 50% increase in payload capacity and the adoption of more powerful Pratt & Whitney Canada PW127G turboprop engines.

During December 1999, it was certificated as airworthy by both the Spanish Dirección General de Aviación Civil and the American Federal Aviation Administration.

[2] During June 2012, Airbus Military announced several enhancements to the base C-295 design, changes included the adoption of winglets and an ability to carry the Marte anti-ship missile; a dedicated airborne early warning and control variant was also planned.

Furthermore, the company was also implementing flap optimisations and other modifications upon the type to enable it to perform extremely short takeoff and landing capabilities.

[8][9] In November 2019, it was announced that Airbus had selected Collins Aerospace to integrate its Pro Line Fusion flight deck onto future C-295s, which shall reportedly reduce pilot workload and easily facilitate further upgrades via its modular design.

It has sufficient volume to carry up to 71 soldiers, 24 stretchers along with up to seven medical attendants, five standard 108" pallets of cargo, or three Land Rover-sized light vehicles.

[1] Numerous customers have opted to arm their aircraft to perform intelligence surveillance and reconnaissance (ISR) operations, being outfitted with various sensors such as a multi-mission radar unit; it can even be equipped as a gunship and tasked with providing close air support to ground forces.

[1] When appropriately furnished, the C-295 can conduct electronic signals intelligence (ELINT), medical evacuation (MEDEVAC), and maritime patrol aircraft (MPA) duties.

Palletised equipment, enabling its rapid installation and removal, is available to outfit the aircraft for use as a VIP transport, aerial refuelling tanker, and water bomber.

[13] Typically, the C-295 is powered by a pair of Pratt & Whitney Canada PW127G turboprop engines, each capable of providing up to 2,645 SHP (1,972 kW).

The normal propellers used are six-bladed scimitar-shaped units, having a diameter of 3.89 meters and built from composite materials by Hamilton Standard.

[18] A single C-295 is routinely deployed as a support aircraft for the Orlik Aerobatic Team, the Polish Air Force's aerial display unit.

[20] The company has been keen to secure a license that would allow it to produce the aircraft for export customers outside of the domestic market, although Airbus has been allegedly reluctant to agree terms for such an extension.

[31] The C-295 was reportedly considered by the US Army to pose a greater risk due to its use of a new operational mode to meet altitude and range requirements.

[33][34] This aircraft has participated in humanitarian operations, such as the delivery of anti-cholera kits, food, water, sanitation, and hygiene goods to Mozambique.

[44][45] On 23 July 2012, the Defence Acquisition Council approved the Acceptance of Necessity (AoN) for the purchase of 56 transport aircraft to replace the ageing HS-748 Avro fleet of the Indian Air Force.

These OEMs were required to partner with an Indian Production Agency (IPA) to first deliver 16 off-the-shelf build and then manufacture 40 aircraft in the country within eight years of signing the contract.

[54][55][66] The weapon systems of the variants will include NASM-SR, NASM-MR and Torpedo Advanced Light (TAL) as well as air-launched sonobuoys.

The ceremony, attended by high-ranking civilian and military dignitaries, featured a flypast of the transport aircraft flanked by two Su-30MKI and a water-connon salute while the C-295 taxied into its squadron premises.

The squadron will "enhance the training of para commandos and special forces, enabling them to deployed in realistic scenarios to address any threats from across the borders or respond to contingencies that requires swift and reliable domestic response" as per a report.