By mid-June 1920, a total of 19 aviation cadets at the Curtiss School of Aviation had soloed. Their enthusiasm for flight and their ability to skillfully handle their aircraft led to Croft's and Stevenot's decision to show off their flying skills in a special demonstration for top government officials.

They selected 20 of their military aviation cadets to fly demonstrations in groups of three, flying the Jennys in a special display on June 21st at Camp Claudio. On the parade ground were members of the Philippine Insular Government, including the Philippine Senate, the Legislature, the military, the press and the public, all waiting to see these much-spoken-about Pilipino pilots in action.

Their flying skills honed by rigorous training and aerial practice over the last five months, the pilots selected to participate in the aerial demonstration were Porfirio E. Zablan, Basilio Femando, Mariano Rueda, Victor Real, Osmundo C. Ramos, Ramon Banez, Eduardo R. Montilla and Alonzo Gatuslao of the Constabulary; and Captains Faustino Reyes and Juan Villasanta and Lieutenants Ignacio Perez, Jose Padilla, Alfonso de Guzman, Juan Calvo, Pedro Dimaguila, and Arturo Maglaya of the Philippine National Guard.

The first two pilots to show off their flying skills were Lt. Maliano who climbed his airplane to 5,000 feet while Lt. Barretto followed him up to 4,300 feet. Then, one by one, each pilot demonstrated stalls, spirals, slips and spins. One pilot, Lt. Reyes, who was very skilled and a bit of a daredevil, flew just a few feet above a tree line that ran along the parade ground and field. At the conclusion of the demonstrations, Croft flew a demonstration flight with the Jenny, making a loop and the same maneuvers each of his students had completed earlier. Reporters covering the flight demonstrations noted that, "the public and government officials in attendance were in awe at the sight of their follow countrymen flying with skill and technique."

This flying exhibition conducted by the Filipino pilots created a stir and renewed interest by the Philippine Government with regard to the seemingly unlimited possibilities that an inter-island air service could provide to the government and to commerce. On July 7, 1920, the Philippine Council of State approved the establishment of the Philippine Air Service which would provide airmail and passenger service between Manila and the ports of Cebu, lloilo, and Zamboanga. And not unlike today's Air Force and Coast Guard aviation units, the Philippine Air Service was charged with the responsibility of drug interdiction, to locate and track suspected opium smugglers and pirates.

Governor General Harrison cabled Washington to advise them of 'the Insular Government's interest in purchasing five Curtiss hydroplanes that the U.S. Navy had recently offered for sale as surplus. .These aircraft included two F-5Ls and three HS-2Ls, all powered by Liberty engines. The two engine F-5Ls, with a wingspan of just over 103 feet, could fly at 90 mph with the pair of 400-hp engines. The F-5L could climb 2,200 feet in 10 minutes, had a service ceiling of 5,500 feet and a maximum range of 830 miles. The HS-2Ls, with a single 360-hp low compression Liberty 12 engine, had a maximum air speed of 82.5 miles per hour and a wingspan of just over 74 feet. The HS-2L could climb 2,300 feet in 10 minutes and had a service ceiling of 5,200 feet.

The new Philippine Air Service was established with an annual operating budget of 300,000 pesos a year. approximately $150,000.00 in 1920 U.S. dollars, with all pilots to be drawn from the graduating cadets of the Curtiss School of Aviation. Each pilot was to be paid 200 pesos a month, which, compared to their regular military salary, was almost a princely sum.

Although the Philippine Air Service would include all military officers drawn from the Philippine National Guard and Constabulary, it would be under the direct authority of the Philippine Government's Militia Commission. It would, however, operate more like a private airline than a military unit, which was a similar practice to that of fledgling air services in other parts of the world.

While the Philippine Air Service was being created. the aviation cadets at the Curtiss School of Aviation continued their training, although in September the focus now shifted from military flying to commercial flying. By this time, the school had changed its name to the Philippine School of Aviation. The Militia Commission which governed the Philippine Air Service placed specific emphasis on training for long distance flying, stressing seaplane flying, cross country navigation, radio operation, and airframe and engine maintenance. It was planned, once the pilots were sufficiently trained, to start the service with six pilots and three flights weekly between Manila and Cebu, lloilo, and Zamboanga as the principal destinations.

The Philippine Air Service hired a group of American technicians to support the fledgling flight operations. The first Curtiss HS-2L hydroplanes had arrived and Thomas McComas, who headed the flight technicians, began the work of assembling and preparing the aircraft for flight.

On December 29th, on the parade grounds on Camp Claudio, Governor General Harrison, Philippine National Guard General R.W. Jones, and Assistant Chief Inspector of the Philippine Constabulary Colonel Charles E. Nathorst, and other dignitaries and friends and family members, were present at the graduation ceremonies for the first graduating class of the Curtiss School of Aviation. It was a clear and sunny day that marked this first in Filipino aviation history, and for all those present, the beginning for what was hoped to be a long and promising future for flight throughout the Philippines.

For the cadets, the ceremony marked a high point in their career and a fulfillment of their aspirations to fly. This was symbolized with the long awaited awarding of their pilot's wings that would soon grace their uniforms. Governor General Harrison and Colonel Hartigan awarded each of the 25 graduating cadets his diploma and presented to each his pilot's wings. The diplomas were a source of great pride, as were the wings of the Philippine Air Service which were specially designed for the Philippine Insular Government by George S. Pomeroy of San Francisco and manufactured by Shreve and Company.