It will be facing no Morovian airforce because it will be operating at sea, rather than hugging the Morovian coastline. And it will not be alone, it will have Radar Airships. Surface Vessels, and assorted aeroplanes. This would be operations against Morovian shipping in deep water.
Not much of one, and we have poor relationships with our neighbours. Morovia is, as far as we know, on good terms with its neighbours and has more land border than sea border, which is much more than we have...
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Merchants do not sit in friendly waters. That completely defeats the purpose of having ships. The concept of having to enter their waters to reach their merchants is ludicrous, ridiculous, and unsound. The Airships have the view, and hopefully RA.D.A.R. capacity to hunt open ocean. Numbers are numbers, assuming it can carry 5 plane 1000 of them could carry 5000, which would easily out-number their opponents, 20 versus the entire air force is just a fabrication. *You use the force you have where you can use it, don't enter hostile airspace until you have the numbers to endure it, the point is still irrelevant. The entire Morovian airforce would need to drop whatever they are doing and respond to one issue on an unusual border. The airships should be fast, not aeroplane fast, but fast enough that they can cause navigation and logistical issues if they can maintain their range. In poor visibility conditions, including distance, they could disappear entirely unless the Morovians happen to have RA.D.A.R. installations over the ocean.
Captured merchants would be in much the same situation as friendly shipping. It would take losses, but many would make it.