Receiving technical advice from Breguet engineers, Fouga commenced aircraft manufacture in 1936 with designs purchased from Pierre Mauboussin, whom the firm also recruited. Mauboussin was joined by Robert Castello, formerly of Dewoitine, and many early Fouga designs are often referred to as "Castel-Mauboussin". Even later aircraft usually bore "CM" as part of their designations.

Fouga's greatest success was the CM.170 Magister, a jet-powered military trainer aircraft derived from the firm's post-war work on sailplanes, and reflecting its sailplane heritage in its slender, tapering wings. With the success of the Magister, a new plant was established at Toulouse in 1953 specifically for its manufacture.

In May 1958, all Fouga assets were purchased by the Potez firm, with the Fouga name being dropped altogether in late 1961.

The remains of Potez and Fouga subsequently belonged to Sud-Aviation, Aérospatiale, EADS and Airbus which still operates major facilities at Toulouse.