In early 1943, Peltz was appointed Inspector of Combat Flight, a role in which he oversaw the strategic development of the German bomber arm.

This initiative lead to a night-time strategic bombing campaign against southern England code-named Operation Steinbock, which ended in heavy losses for German bombers in early 1944.

He was tasked with the entire aerial Defense of the Reich in March 1945 and advocated the idea of "ramming" to halt the air campaign against Germany even at the risk of sustaining high losses.

Aged 18 he had received a pilot's license and graduated in 1933 with his Abitur (diploma) from the Hermann Lietz country boarding school in Spiekeroog.

He joined the military service of the Reichsheer as an officer candidate with the 1st company of the Kraftfahr-Abteilung 5 (5th Motor Vehicle Department) in Stuttgart-Cannstatt on 4 April 1934.

He was promoted to Oberfähnrich (senior ensign) on 1 October 1935 and transferred to the Air War School Klotzsche in Dresden.

Following the Anschluss, the annexation of Austria into Nazi Germany, just as the Junkers Ju 87B came into service, this unit was moved to Graz and was referred to as II.

Observing the demonstration were the senior Luftwaffe commanders, including Generals Hugo Sperrle, Bruno Loerzer, and Wolfram von Richthofen.

[2] World War II in Europe began on Friday 1 September 1939 when German forces invaded Poland.

Peltz flew 45 combat missions with his Staffel against Poland, attacking railway lines, traffic junctions and bridges as well as the Bombing of Wieluń.

In August 1940 he was posted to the Geschwaderstab (headquarters unit) of Kampfgeschwader 77 (KG 77—77th Bomber Wing) based in Laon at the Channel Front.

He flew 70 daytime and nocturnal missions in the Battle of Britain including special operations of him alone attacking specific targets.

[3] Peltz was ordered to surrender his command of II./KG 77 on 30 September 1941 to Haupmann Heinrich Paepcke and was posted to the Luftwaffenstab (Air Force headquarters) at the Ministry of Aviation (RLM—Reichsluftfahrtministerium) in Berlin.

He was put in charge of diver-bomber training at the unit leadership school for bomber pilots (Verbandsführerschule für Kampfflieger) at Foggia in Italy.

In the timeframe of 8–31 July 1942 he served as an officer for special assignments (Offizier zur besonderen Verwendung) of the RLM and Commander-in-Chief of the Luftwaffe.

A month later, on 1 January 1943, Peltz replaced the World War I veteran Generalleutnant (Lieutenant General) Johannes Fink as the Inspector of Combat Flight with the Oberkommando der Luftwaffe (OKL—Air Force High Command).

He went on and explained that the Me 262 was unsuitable for dive bombing, and in level flight, hitting a target of the size of one square kilometer (0.39 sq mi) depended largely on luck.

Göring, under pressure to present Hitler with a fast bomber capable of avoiding the Allied fighters, was infuriated by his assessment.

Peltz went on to explain that the problem of staying in formation during bad weather would further negate the bombing effect as attacks would have to be made by single aircraft.

[7] Peltz was promoted to Oberst im Generalstab (colonel in the General Staff) on 17 March 1943 with a Rangdienstalter (RDA—rank seniority) of 1 September 1943.

The attacks, initially against London and the industrial areas and later against coastal targets, dwindled to a halt in late May after heavy losses to the Germans, with little to show for the effort.

This Luftwaffe version of the Greek Areopagus—a court of justice—aimed at finding solutions to the deteriorating air war situation over Germany.

[11] Peltz, who by training and experience was a bomber expert but admired by Hitler for efficiency in carrying out orders, became the commander of the II.

Jagdkorps (2nd Fighter Corps) which saw action during the Ardennes offensive, in particular the Operation Bodenplatte, the attempt to gain air superiority during the stagnant stage of the Battle of the Bulge so that the German Army and Waffen-SS forces could resume their advance.

[15] In mid-January 1945, Peltz visited the Luftkriegsschule 2 in Berlin-Gatow to recruit volunteers for ramming missions against the Allied bomber force.

[16] In March, Peltz, the youngest general in the Wehrmacht, had been tasked with the obligation to coordinate the entire aerial Defense of the Reich.

[18] At the same time General der Flieger Karl Koller had ordered JV 44 to relocate to Prague and continue fighting.

Oberstleutnant Heinrich Bär, who was substituting for the injured Galland as commander of JV 44, attempted to ignore the order.