Twice that month Anderson's plane was dived upon by multiple enemy aircraft. He was, in his own words, "too scared to think" on the first occasion, but both times held his nerve and manoeuvred his plane so that his observer could hold off their opponents with Lewis Gun fire while other R.E.8s came to their aid. Anderson was spotting for artillery near the Messines Ridge on 6 December when he engaged a German two-seat DFW that observer John Bell was able to shoot down; it was No. 3 Squadron's first confirmed aerial victory. In January 1918, Anderson was given the temporary rank of major and posted to England to take charge of No. 7 (Training) Squadron AFC. He was recommended for the Military Cross (MC) on 12 March for his achievements with No. 3 Squadron in France, the citation noting his "resolute fight" and "cool and capable flying" in evading attacks by enemy aircraft and successfully carrying out his reconnaissance missions. In the event, he was awarded the Distinguished Flying Cross (DFC) in the King's Birthday Honours promulgated in the London Gazette on 3 June, becoming the first Australian to receive the newly created decoration. He was also awarded the Belgian Croix de guerre, gazetted on 9 July. Anderson went back to France in October 1918 as commanding officer of No. 3 Squadron. His service earned him a mention in despatches on 11 July 1919. Inter-war years Anderson relinquished command of No. 3 Squadron in January 1919 and returned to Australia two months later. In December that year the Australian Flying Corps was disbanded, to be replaced on 1 January 1920 by the short-lived Australian Air Corps (AAC), which was, like the AFC, a branch of the Army. The AFC's senior officer, Lieutenant Colonel Richard Williams, was still in England, and Major Anderson was appointed commander of the AAC, a position that also put him in charge of Central Flying School (CFS) at Point Cook, Victoria. On 31 March 1921, he joined the newly formed Australian Air Force (the "Royal" prefix being added in August) as a squadron leader, becoming its third most senior officer after Williams and former Royal Naval Air Service pilot Stanley Goble, both now wing commanders. During 1921, Anderson headed up the RAAF's Point Cook base and its two major units, No. 1 Flying Training School (No. 1 FTS)—the successor to CFS—and the newly established No.