On January 16, 1911, Kelly was a troop officer in the 30th Infantry when he participated in an exhibition reconnaissance flight with Wright Company pilot Walter Brookins.

Kelly volunteered for flying training and was detailed to the Aeronautical Division, U.S. Signal Corps and sent to the Curtiss aviation school in San Diego, California.

After five minutes in the air, Kelly came down for a landing at what appeared be full speed, and failed to level off in time.

Heading for the tent encampment of the infantry, Kelly managed to pull up and turn to make another landing attempt.

The investigating board ruled that the crash occurred because the first landing had damaged the control system, and that Kelly sacrificed himself to avoid plowing into the encampment.

Due to this crash, the commanding officer of the Maneuver Division, Maj. Gen. William Harding Carter, banned further training flights at the fort.