Winfield launches a full assault on Neo Sapien occupied Mercury as a prelude to taking back the Homeworlds.
Kaz meets an experienced E Frame pilot, Yuri Stavrogen, a frequently insubordinate old friend of JT's from the academy. He shares rumours of a Neo Sapien ace pilot in a red Y Wing who is supposed to be unbeatable and stationed on Mercury.
During the assault Kaz and Stavrogen disobey orders to regroup in order to continue attacking Thrax and Kaz even fakes a communication malfunction as an excuse. JT isn't fooled for a second and grounds Kaz just as the Neo counter attack begins.
Kaz, seeing the e frames have been drawn away from the fleet goes out to defend the ships and take on Thrax again .
Stavrogen's e-frame is crippled and Kaz is shot down by Thrax ,crashing landing on an asteroid's surface.
The Neo ace hovers near Kaz, who invites him to take his shot but Thrax refuses and withdraws.
Thrax's Y-Wing is painted red as a reference to the World War One flying ace Manfred von Richthofen, also known as the Red Baron