The flight was formed on 1 July 1925, and operated from the Royal Australian Navy seaplane tender HMAS Albatross between 1929 and 1933.

101 (Fleet Co-Operation) Flight was formed at RAAF Station Point Cook near Melbourne on 1 July 1925.

[2] The unit was initially equipped with Fairey III float planes, and began flying in support of the Royal Australian Navy (RAN) that year.

Its role in this survey built upon trial flights conducted in the area by RAAF Fairey IIIs during 1924 and 1925.

101 Flight's Seagull IIIs were the only RAAF aircraft which were potentially suitable for being operated from a seaplane tender, though Albatross' designers were not informed of this.

[8] As the Seagulls could not be launched from Albatross' catapult the ship could only conduct flying operations in calm weather, and had to stop to load and unload aircraft.

[9][11] Nevertheless, historian Chris Coulthard-Clark has judged that "despite the fact that embarkation of the Seagull III was an expedient which meant that only air operations of quite limited scope were possible, these planes were able to satisfy reconnaissance, gunnery, torpedo spotting and survey requirements provided sea conditions were favourable".

[12] The ship sailed on 12 April, but was recalled to Sydney six hours later after it was confirmed that Southern Cross had been located.

[15] From 1930, Albatross regularly conducted lengthy cruises around Australia, and to New Guinea and New Zealand, and training exercises with other RAN warships.

101 Flight suffered from serious tensions as many members of the unit disliked their commander from December 1929, Squadron Leader Victor Scriven, who was an exchange officer from the Royal Air Force.

Scriven behaved in a high-handed manner, and engaged in dangerous practices such as attempting to recover a Seagull on board Albatross while the ship was moving; this incident nearly resulted in the deaths of the aircraft's crew.

101 Flight's Seagulls crashed during a fleet exercise near Doughboy Island off Tasmania, killing one member of the crew and badly injuring several others.

101 Flight, Scriven declared it to be unable to conduct naval co-operation tasks during late 1930 or early 1931.

101 Flight's Seagulls declined due to wear on their mechanical components and growth in weight from rust and water soakage.

[24] These aircraft began to be delivered in early 1935, with Australia receiving her Walrus during a visit to the UK ahead of operating with the Royal Navy in the Mediterranean.