This is a three parter:
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Missiles that seek towards flares and intersect with a flare should explode midair and can cause AOE damage. The farther away from the explosion the less damage the plane will sustain. Missiles can still however completely miss and fly off into the oblivion as they currently do.
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A chance that when the player or AI is hit by a missile that the plane will just explode and there is no eject animation and is considered an instant death (only 1 point is taken from the player and the [Eject Failed] prompt is not displayed).
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Change how missile launching works, instead of the player needing to just get the enemy within the 90° arc and then being able to loose fire, the missile should require a longer lock time and then change into the diamond shape before the player can launch a missile. This should help reduce missile spam once multiplayer releases.