The Squadron ability (usually paired with the Elusive ability), indicates that a ship is actually a squadron of long-range fighters. The number of fighters in the squadron is equal to the number of beams the ship has. In a battle, when one of the fighters is destroyed, the rest of the fighters immediately circle around for another attack. This process continues until the ship wins or the last fighter is destroyed.
Due to the multi-vessel nature of starships with this ability, while it can be repaired, lost fighters will not be recovered this way. Only a Fed's Super Refit mission can restore lost fighters.
In addition, the Squadron ability causes crew to not be killed in combat.
No special Mission or Friendly Code is required to activate this ability.