As CAS, Funnell focused on turning the RAAF into the "air power element of a cohesive, integrated defence force". His tenure saw the continuation of a shift in the RAAF's 'centre of gravity' from the south to the north of Australia. RAAF Base Curtin, in North Western Australia, and RAAF Base Tindal, in the Northern Territory, were opened and development proceeded on RAAF Base Scherger in Far North Queensland. At the same time, bases in the south, including Point Cook, Laverton and support units in capital cities, were rationalised. The Air Force was in the process of re-equipping its Mirage III fighter squadrons with the &lt;a href="McDonnell%20Douglas%20F/A-18%20Hornet"&gt;F/A-18 Hornet&lt;/a&gt; when Funnell became CAS, and he had to contend with a shortage of pilots that was exacerbated by the extra training time required for the new aircraft. In September 1988, he flew one of the RAAF's recently acquired Pilatus PC-9 turboprop trainers in the Bicentenary Round Australia Air Race. He considered it fitting that the CAS should make the journey, as Stanley Goble had held the same position when he circumnavigated Australia for the first time in 1924. His term coincided with the 1990–91 Gulf War; the RAAF's contribution included transporting Australian hostages and medical staff from the Middle East. Funnell was appointed a Companion of the Order of Australia (AC) on 12 June 1989 for his service as CAS, and awarded the US Commander of the Legion of Merit in 1991.