Yes, I agree with both of you.
I was stating what I wish could happen, but in my first post I stated what I felt the rules were and how I played it out.
So, to be VERY clear, the way that I understand it is as follows:
Hypothetical situation
I REALLY need to destroy 5 enemy transports, but they are defended by 14 subs and 5 destroyers. I only have 4 air units in range (bombers), but I REALLY need to destroy the transports, because if even 1 transport is left alive, then I will lose the game, and I’m afraid that the 5 destroyers will hit my bombers, so I do have 15 cv’s (with no fighters - remember, this is hypothetical) in range. I do have 20 destroyers and 20 fighters which may move to 1 space away from the combat sea zone, so I want to retreat any available cv’s back so that they can join up with the destroyers and fighters.
So, I attack the 5 transports, 5 destroyers, 14 subs with 15 carriers, 4 bombers.
Since I have no attacking destroyer, all 20 of his subs fire Surprise Strikes, and for the sake of the hypothetical, we’ll use Low Luck calculations.
His 14 subs hit 2 cvs, so then I’m left with 13 cv’s. They and the 4 bombers get 5 hits (2 sea, and 3 air). My opponent will apply the 2 sea hits to the subs and the 3 air hits to the destroyers. He fires back with his 5 dd’s and gets 2 hits, so I lose 2 more cvs.
Round 2 – I have 11 cv’s and 4 bombers vs his 5 transports, 12 subs, 2 destroyers.
His 12 subs get 2 Surprise Strike hits, so I lose 2 more cvs.
My 9 cv’s and 4 bombers fire and get 4 hits (1 naval, and 3 air)
My opponent will apply the naval hit to the subs and 2 of the 3 air hits to the remaining 2 destroyers. This leaves 1 air hit left to be applied. In my understanding, this hit must be applied to a defending transport.
His 2 remaining destroyers fire back and get 1 hit, so I lose 1 more cv.
Round 3 – I have 8 cv’s and 4 bombers vs his 4 transports, 11 subs.
His 11 subs get 2 Surprise Strike hits, so I lose 2 more cvs.
My 6 cv’s and 4 bombers fire and get 4 hits (1 naval, and 3 air)
My opponent will apply the naval hit to the subs and the 3 air hits to defending transports.
Round 4 – I have 6 cv’s and 4 bombers vs his 1 transport and 10 subs.
His 10 subs get 2 Surprise Strike hits, so I lose 2 more cvs.
My 4 cv’s and 4 bombers fire and get 4 hits (1 naval, and 3 air)
My opponent will apply the naval hit to the subs and the 3 air hits to the final remaining transport.
Now at the beginning of round 5, I have 4 carriers and 4 bombers remaining, and my opponent has 9 subs remaining (with NO transports). I now choose to retreat, having accomplished my goal of sinking ALL 5 of his transports, even though I had to lose 11 carriers to do it.
This is the way that I understand the rules.