Unable to resolve these differences the Air Force inactivated the 148th Fighter-Interceptor Squadron on 30 June 1956. It was subsequently re-designated the 140th Aeromedical Transport Squadron and reactivated at Spaatz Field as a new organization of the PA ANG, equipped with propeller-driven C-46 Commandos. The 148th's its lineage and history were bestowed on the new squadron. With the inactivation of the 148th, the 103d Fighter-Interceptor Squadron at Philadelphia took up the air defense mission of the eastern part of the commonwealth.