Each squad and/or wing has formation options available to the commander of each, possible “formation setup” app that allows them to set parameters (position within formation, orbital speeds on target) for multiple designated alphanumeric “types” (1, 2, 3, A, 4B, etc), saved formations can be shared like fittings for doctrinal ease. Squads operate formations by single ships, wings fill positions by squads, a wing formation does not necessarily imply squads have formations, though they will flock around the SCs position as a keystone marker of some sort.
Each formation, based on the parameters set, provide a certain set of generic, mostly range or accuracy-based, bonuses (resolution, targeting range, falloff range, drone control range, etc) to all members of the formation, namely squad formations. In addition, squad formations will share targeting qualities and hit allocation, hostiles targeting a squad will scatter attacks across all members of that squad while in formation, on the downside the signature radius[ED] will be increased to average among the squad in same-size-hull formations and the median in the case of mixed-size-hull formations (frigates providing an honorguard a BB would give the BB a bonus reduction to its radius while taking a significant hit to theirs, majority cruisers mixing in defensive destroyers would mildly improve cruiser sig-radius values while harming the destroyers). Wings in formation would force hostiles to target the nearest squad or one of its component vessels if the squad were not in its own formation. This feature can be overriden by cycling an auto-targeting module normally or using the overview tab to select a primary out of the highlighted ships/squads in the squad/wing (addition of overview feature, auto-sorting target groups into sqauds/wings).
Squad/wings move according to the commander’s navigation points and a component (squad/ship) can break formation as easily as selecting their own navigation point, using maneuver keys does not and a ship will settle back towards its point in the formation while avoiding hard course corrections (applications obvious), rejoining a formation is as easy as clicking on your fleet window and selecting the option to join formation and selecting one of the open “type” slots, this also allows ships from across formations to join each other and reinforce without adding the complications of moving around inside the fleet hierarchy as well as using the formation options in the middle of combat.
[Application of mechanics needed to address formations larger than set parameters can handle.]