Phase II testing began on 15 June 1982, continued through October 1982, and determined that the final configuration resulted in significant improvements in design, avionics, and equipment, and that the Combat Talon II design was ready for production. The 1st Special Operations Wing attempted to have the test bed transferred to operational duty as an interim Combat Talon II until production models became available, but Headquarters, Tactical Airlift Command disagreed. The cost of returning the YMC-130H to stock airlift configuration was more than its value, and it never flew again.