Well, we know from this story that they were at least no longer flying around in their shirtsleeves by the supersonic jet era. As for the F-104, the Italians did operate their F-104S version until 2004 IRL—although as far as I know, they only brought Panavia Tornados to the Gulf War, the need for interceptors in that war being somewhat limited on the Coalition side.

--G.
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