"It is a very sad but, but inevitable," acting president Lloyd Stridiron, of Invercargill, said.
Declining membership, coupled with the age of the remaining 40 members, resulted in the association opting to disband.
The occasion was marked by a luncheon at Wobbly's Bar and Restaurant, Forbury Park Raceway, Dunedin yesterday.
About 30 members attended the last committee meeting, at which the book containing the association's records was handed to a Hocken Library representative.
One of the founding members, Len Hesford, of Dunedin, said the association could be summed up in one word for the 83-year-old, "comradeship".
"It has been a place where friends talk about old times. It will be missed."
His Macandrew Rd School friend and air force buddy, Ray Townsend (83), of Dunedin, agreed.
"It has been enjoyable and I guess, in some ways, it is the end of an era, because we can't go on forever.
Both said members would now focus attention on the RSA and they hoped the younger generation would keep an interest in the air force.
"It has been a wonderful association and it will be missed," Nancy Finlay (90), of Taieri, said.
Formed in 1946, the association began with more than 400 members, declining to 150 a few years ago before membership dropped to just 40.
The association's plight was highlighted at its annual meeting last December, when it could not get a quorum to discuss its future.
A postal ballot was undertaken earlier this year, with members voting to discontinue the association.
