While this thread pretty well covers the response to this post, there is some additional factual detail which may help everyone understand this movie better. This comes straight out of the Airmanship course for future officers taught at both the Air Force Academy and in AFROTC (still taught--not as a "how-to" manual by itself, but as the basis for a practical exercise in leadership).
The officer portrayed as Colonel Davenport was for the most part based on Colonel Charles "Chip" Overacker, a decent, hardworking man who was from the pre-war Air Corps with Armstrong and Eaker. But Armstrong didn't just re-build one slack group but two. In August 1942 he relieved the commander of the 97th Bomb Group, a popular and well-known B-17 pioneer named "Connie" Cousland. Armstrong himself said it was the 97th, not the 306th, that was the disciplinary problem when he took over (althought the scene with sentry played by Kenneth Tobey did take place at the main gate of the 306th base at Thurleigh). The 306th was a veteran outfit and its lack of military bearing was a symptom, not the problem itself, whereas the 97th was actually undisciplined, untrained, and lacking in direction. So the book and by extension the movie are composites of Armstrong's experiences with both groups, as well as Colonel Fred Castle's in taking over the 94th Bomb Group.
What neither the book nor the movie explained was what got Overacker fired. The writers liked Overacker the way Savage liked and admired Keith Davenport. It was not as simple as "all he did was look after his men." Far from it. Not only was the 306th suffering losses at twice the rates of the other groups, but the experience so bothered Overacker that he became a loose cannon. The trip to Pinetree made by Davenport really happened, and was more hysterical than depicted. (After the low-altitude bombing mission shown, the 306th landed at an RAF base and vandalized its officer's club in a drunken binge--led by Overacker.) When it failed to change the mission tactics, Overacker began openly and persistently criticizing to his air crews the orders and decisions made by Bomber Command. This went on for two months but Eaker and Armstrong strung along with Overacker because they too admired and liked him and hoped he would battle his way out of the hole.
The 306th then began to fail in its committments. Aborts for personnel reasons (not mechanical) skyrocketed and were quadruple the rate of the other groups COMBINED. On the last mission before Overacker was fired the entire group turned back for crew reasons, not mechanical, except for one plane which attached itself to the 91st Bomb Group and completed the mission. When Pritchard comments to Savage that an American group had quit, he meant just that--only Bartlett and Lay simply couldn't say so in so many words, out of fondness for Overacker and loyalty to the 306th, which did turn itself around and perform with dedication. That was the mission that got him relieved--his group had quit. The book and script both hinted at it in the "sick reports" mentioned by Doc Kaiser (who was not sympathetic to Davenport in the book--he felt he was the cause).
Bartlett and Lay knew a real crisis had occurred and why, but they did not want to paint Davenport/Overacker in a such a bad light, especially since both group and colonel went on to honorable service for the rest of the war. So they let the disciplinary problems of the 97th become those of the 306th, and let the symptoms take the place of the real problem, which was that the command staff of the 306th wasn't doing its job (primarily because Overacker was doing everything himself instead of delegating).
Armstrong led only two missions during his command of the 306th--but he insisted that the squadron and staff officers do theirs, including leading combat missions (as represented by his treatment of Gately). He quietly relieved the deputy commander (air exec) who had wangled a temporary job at wing staff, and brought in a squadron commander from the 91st, Major Claude Putnam, to replace him (Putnam took over from Armstrong in February when Armstrong was promoted to wing commander). He also replaced the Operations Officer with a squadron CO a la Joe Cobb.
So you see, Savage was "being mean" to immature kids who needed a kick in the pants (the kids of the 97th) to re-instill basic discipline--they not only weren't performing, but they couldn't. (Don't tell me that harsh methods to correct a similar company-wide problem in business today would get an exec fired immediately, because that's crap).
If it's any consolation, I too wondered why Davenport was treated so severely until I learned the whole story. As a post-script, Overacker was retained on Eaker's staff until he began criticizing the boss in memos and reports (sound familiar?), at which point he was sent back to the US and served out the war as director of an R&D unit at Eglin Field, Florida.
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