The squadron was established on January 28, 2019[1] as part of an agreement between the Government of Israel, the Israeli Aerospace Industries and the German Army.

[3] The value of the agreement between the countries is estimated at 900 million Euros, under which the German Air Force will lease seven UAVs for a period of nine years.

[2] Five of the UAVs will be used for operational purposes and two more for training [2][4] In addition to the lease agreement, a contract in the amount of 170 million euros was decided on for the use of the airport and airspace.

The name of the squadron was proposed by the Israeli side of the agreement, marking the legacy of the battle of the Red Baron.

[4] In November 2020, Germany's military attaché in Israel, Colonel Jürgen Hefner, awarded the Cross of Honor to the first squadron commander, Lt. Col. Y (name kept secret).