In 1940, the Pallamaran Luchtmacht was primarily influenced by the Regia Aeronautica Italiana, as many pilots had trained with the Italians, and the most recent combat aircraft were of Italian design, with the main front line fighter being the Macchi MC.200. In that year, however, the Netherlands was conquered by Germany, leaving the NEI cut off. Queen Wilhemina made an appeal to Grand Duke Valarian IV which resulted in Pallamara becoming the caretaker of the Netherlands East Indies, and inheriting the considerable problems of defending it, should japan attack.
One of the primary deficiencies of the Luchtmacht was its lack of the required numbers of modern fighters. The Macchi MC.200 was the standard fighter, but not available in sufficient amounts. Plans for production of the superior Macchi MC.202 had been made, but without the DB engine, the project was dead, and the war had cut off any prospect of those being procured. An attempt was being made to redesign the aircraft to use a Merlin engine, (available via the Dracen Commonwealth) though there was a question regarding supply of these, and even so, production wouldn't be able to supply the required numbers in time. There was only a single aircraft factory in the Grand Duchy, with another still under construction, able to supply perhaps 24 airframes a month, but rather less in the way of engines.
At the time, the United States was the only viable supplier of aircraft, though the UK was soaking up much of the extra production available, resulting in few choices of aircraft being offered, the best of which was the Curtiss Hawk-75, the option chosen. An order for 200 aircraft was placed, armed with 4x Browning .50 caliber machine guns, two firing through the propeller hub, and two in the wings. Additional aircraft were procured through Great Britain, who'd inherited some of the earlier machines destined for France, though these would have to be rearmed, and in some cases, re-engined to bring them up to standards with the aircraft being procured.
Although the RAI trained pilots initially turned their noses up at the American machines, some came to actually prefer them, performance being very close to their MC.200s, with each aircraft having its pros and cons.
The RAI influence is evident in this early war paint scheme, with the brightly colored cowling, the white crosses, painted wingtips and theatre bands being copied, though in Luchtmacht, they were used to denote different squadrons, with different colored wingtips, fuselage bands, and cowling colors belonging to each unit. The bright colors were intended to make identification easier, especially for anti-aircraft gunners. The early war would see these colors subdued, though by the end of the conflict, they'd make their return. The white crosses were a reference to the Pallamaran ensign.
Commonwealth pilots who flew alongside the Luchtmacht were quick to note the color schemes, having recently flown against Axis aircraft, leading some wag to nickname them "the Regia Aeronautica/Luftwaffe, Pacific Branch".