I just started playing Xenonauts and intercepted my first UFO scout with a Condor. A tutorial popup window notified me that the game supports automatic or manual air combat, and I believe it indicated it was currently manual by default.
I tried pressing some buttons that flipped my missiles and cannons between red and green. Not really sure what I was doing, there. Disabling them and enabling them, maybe? Eventually my ship got close (automatically) and started firing. The UFO blew my Condor out of the sky.
I have no idea what I'm doing and didn't see a button to switch between manual or automatic air combat, though maybe that's just because I was being shot at while looking for it. And while I could swear the tutorial window said it was defaulting to manual, my Condor sure seemed to do a lot of flying and shooting on its own.
How exactly does this work?