There are several steps involved in naval conflicts. All naval battles, including those that occur from submarine detection and sub interception can be resolved by using these steps.
Step 1) Any fighter stationed aboard undamaged aircraft carriers may attempt to intercept any aircraft in the attacking force and engage in air combat (see air combat).
Step 2) Defending ships get to roll their defensive factors against any attacking aircraft that make it past the air battle (if any). Any ship that rolls equal to or less than its defense factor successfully scores a hit against the attacker. The attack removes on plane for each hit that is taken. Aircraft at this stage do NOT get to roll against the defending ships.
Step 3) Any AA guns on the ships get to fire at the planes that are going to attack.
Step 4) All attacking ships and aircraft roll for hits. Then defending ships and planes roll for defense. Players roll 1D10 for each ship, with a roll equal to or lower than the ship’s attack/defense level meaning that ship has scored one “hit” against the opposing force.
Step 5) Both the attacker and defender take losses, removing one ship for each “hit” the opposing side scored that combat round. Except for Battleships and Aircraft Carriers, both which can take two or more hits before they are removed from play. Hits scored by AA guns can only be used to destroy planes and hits scored by submarines can only be applied to ships.
Step 6) The attacking force may now opt to retreat into any allied occupied or empty sea zone. Retreating aircraft are subject to 1 round of defensive fire as listed in step 2, but no AA gunfire.
Step 7) If the attacker does not retreat, then repeat steps 4-7 over until the attacker retreats or there is a winner.