With the start of the Overseas War (), in 1961, and the subsequent gained experience in the operational use of the Alouette II in Africa, the military became aware of the necessity of a more capable helicopter and in greater numbers. Therefore, a demonstration between the Agusta-Bell AB 204B and Sud Aviation Alouette III took place in 1963 at OGMA (then part of the PAF) to select a new helicopter type to complement and eventually replace the Alouette II. The Portuguese government then selected the Alouette III and ordered the first 80 helicopters from Sud Aviation (later Aérospatiale). A total of 142 units were purchased and delivered between April 1963 and February 1975.