In 1945, it was transferred to the Royal Australian Air Force (RAAF), but returned to Dutch control in 1947 and subsequently took part in operations during the Indonesian National Revolution.
It took control of 13 Dakotas that had previously been operated by the Dutch East Indies airline KNILM, while a further 17 were obtained from the US; of these, 10 were used for flying and the remainder to provide spare parts.
[7] Some of the squadron's Dutch crews were transferred from the USAAF 374th Troop Carrier Group, having received training in the US following their escape from the NEI.
[14] The issue of the involvement of RAAF personnel in Dutch operations to reoccupy the NEI was politically sensitive as there was growing anti-colonial sentiment both in Australia and also in Britain and the United States.
Nevertheless, the squadron operated as part of the RAAF for over a year, even when there was growing resistance in Australian society, particularly within the labour movement, to assisting the Dutch.
[15] It officially ceased to be part of the RAAF on 1 January 1947, and was transferred back to Dutch control for further service in the campaign against the nationalists.
[16] On 26 February 1947, a Dakota operated by the squadron crashed into the sea off Point Lookout, near Stradbroke Island in Queensland, killing all six people on board.