In 1911 the Air Battalion of the Royal Engineers, consisting of Headquarters, No. 1 Company (Airships) and No. 2 Company (Aeroplanes), was formed and superseded the Balloon School. The creation of No. 2 Company, stationed at Larkhill, marked the first formation of a British military unit composed entirely of heavier-than-air aircraft. The same year witnessed the inception of the B.E., F.E. and S.E. type machines in the Balloon Factory, but the total of our machines, both for naval and military requirements, amounted to something less than twelve aeroplanes and two small airships; and the mishaps suffered by the military machines on their flight from Larkhill to Cambridge, to take part in Army Man[oe]uvres, were significant of their unreliability. _The Royal Flying Corps._ In view, therefore, of the reports received of the progress abroad, the Air Battalion was clearly insufficient to meet the demands which might be made upon it in the event of war; and at the end of 1911 the Prime Minister instructed a standing Sub-Committee of the Committee of Imperial Defence to consider the future development of air navigation for naval and military purposes. As a result of their deliberations the Committee recommended the creation of a British Air Service to be regarded as one and designated the Royal Flying Corps; the division of the Corps into a Naval Wing, a Military Wing, and a Central Flying School; the maintenance of the closest possible collaboration between the Corps, the Advisory Committee for Aeronautics and the Aircraft (late Balloon) Factory; and the appointment of a permanent Consultative Committee, named the Air Committee, to deal with all aeronautical questions affecting both the Admiralty and the War Office.