

O'Neill then set to work with his co-instructors German Fritz Bieler and Frenchman Joe Ben Lievre, using the first intercom known as the "Gosport System", invented by Robert Smith-Barry, in order to give in-air commands. The next step was the formation of classified fighter, bombing, observation and reconnaissance squadrons, as well as the decentralization of Air Force units throughout the country at strategic bases. O'Neill was the first to introduce the term "Fuerza Aérea Mexicana" (FAM) naming the organization as such. Commander O'Neill soon acquired 35 British made Avro 504K and Avro 504J airplanes, which later would be made in Mexico under the name Avro Anáhuac. In anticipation of the new "Chief", a purchase was made of 13 French Farman F.50 night bombers. The branch initially consisted of 27 pilots, 17 of which were cadets.

5 others were in repair and over 20 more at the TNCA were obsolete or wrecked beyond repair. These were functional yet ill-equipped for battle, 4 being scout monoplanes. Until August 1920, the entire fleet consisted of 13 national made prototypes of mixed engine design. Colonel Ralph O'Neill was hired to head the restructuring of the Mexican Air Force in 1920, he reported to General Plutarco Elías Calles that most of the aircraft available had to be replaced. General O'Neill Standing with President Obregon
