By June 17, 1940, when Marshal Pétain sought terms of surrender from the Germans, Paris had been occupied and Guerdian's armoured forces had thrust forward as far as Dijon and Saône. The Armée de l' Air was still fighting, and on June 23rd, when the French Government capitulated, had more operational aircraft than at the start of the German offensive. During June 18th-20th the D.520 fighters of GCI/3, II/3, III/3, III/6 and II/7, and the Hawk 75As of GCIII/2, I/4, II/4, I/5 and II/5 had been ordered to North Africa, but the remainder of the Armée de l' Air elements based in France at the time of the capitulation awaited disbandment in accordance with the terms of the Armistice.
On July 3rd the Royal Navy launched an attack on the French Fleet at Mers el Kébir to prevent its possible use by the Axis powers. In the hope that the Mers el Kébir clash would develop into a Franco-British war, the German Government rescinded its demand for the disbandment of all Armée de l' Air elements, and agreed to the retention of some units for the protection of France's North African possessions.
The forces retained, subsequently referred to as the Vichy Air Force, included 6 Groupes de Chasse, with Bloch M.B.151s, 152s and 155s; two Escardrilles de Chasse de Nuit, with Potez 631s; four Groupes de Bombardement with LeO451s; two Groupes de Bombardement d' Assault with Breguet 693s; three Groupes du Reconnaissance with Potez 63-11s, and one Groupe de Transport with Farman 222s and Amiot 143s. All these units were divided into the 1° and 2° Régions Aériennes. Fighter pilots were allowed to fly four hours each month, and bomber and reconnaissance pilots six hours. The German Armistice Commission also permitted production of the Dewoitine D.520 fighter to continue at Toluse, this type later re-equipping several Vichy Groupes de Chasse.
In North Africa, which was designated Commandment Superior de l' Air en Afrique du Nord, were based four Groupes de Chase with D.520s and two with Hawk 75As; five Groupes de Bombardement with LeO451s and four with DB-7s; two Groupes de Reconnaissance with M.B.174s and 175s, two with Potez 63-11s. and one with Martin 167s; and one Groupe de Transport flying Potez 54s and 65s. In French West Africa the Vichy Air Force had one Hawk 75A-equipped Groupe de Chase; three Groupes de Bombardement flying Martin 167s, and one Groupe de Reconnaissance flying Potez 63-11s. In Madagascar were stationed a mixed squadron of Potez 25s and 63-11s, and in Syria and the Lebanon were one M.S.406 Groupe, one Martin 167 Groupe de Bombardement, one Potez 63-11 Groupe, and six squadrons with obsolete Bloch M.B.200s, Potez 25s and 29s. A number of the units were not at their full establishments but, nevertheless, the Vichy Air Force was quite a sizeable component with between 700 and 800 combat aircraft.