I believe everyone agrees the squadron is "engaged" by the ruling on the card. Also, I believe everyone agrees that by being engaged, a squadron must attack an engaged squadron, "if possible". The engagement rule is restricting what an engaged squadron may do, including attack. Does it state anywhere in the engagement rule that an "engaged squadron may attack a ship"? There is no statement to that effect. The rule only states that an engaged squadron must attack an engaged squadron. The "if possible rather than a ship" does not state an engaged squadron may attack a ship. Technically there should be a comma after "if possible," to qualify that there are situations that an attacking squadron may not be able to attack. In situations where it is "not possible" for an engaged squadron to attack an engaged squadron, it does not state it may attack a ship instead, it just can't
Tycho Celchu has a specific exception to the engagement rule that allows him to attack a ship when engaged.
Edited by B2000