If I play the mission with the default setup, it works fine.
However, here is my setup for the mission (Medium Difficulty):
1) Swap the Ulysses fighters with the Valkryies. This means that Alpha wing is all Ulysses and Beta are all Valkryies.
2) Assign Hercules fighters to Alpha One and Alpha Two.
3) Alpha One has one bank of interceptors and one bank of hornets.
4) Alpha Two has both banks of Hornets.
5) Alpha One and Alpha 2 have Banshee on the top rack, Prometheus-S on the bottom.
6) On Beta One and Beta Two, replace the Avenger Cannon with the Banshee.
7) On Alpha Three, Alpha four, Beta three, Beta four, replace the Avenger Cannon with the Prometheus-S.
With this setup, the mission crashes after Indra Wing arrives.