On 19 December 1948 the Dutch launched a second police action, called Operation Kraai, which involved offensives in western Java and Sumatra. This campaign lasted until 9 January 1949; during this time No. 120 Squadron's Kittyhawks flew 183 sorties though four aircraft were lost. In early 1949 the squadron was reequipped with P-51 Mustang fighters, and it had nine of these aircraft but only six pilots in April. In July 1949 the Dutch and Indonesians agreed to a ceasefire, and the war ended in December with the Dutch handing over sovereignty to the Republic of the United States of Indonesia. As part of this settlement the NEIAF was transferred to the new republic, though the Dutch retained No. 18 and 120 Squadrons for as long as possible. No. 120 Squadron ceased to exist on 1 March 1950.