The performance of an algorithm to calculate aerosol backscatter coefficients, from measurements with an airborne continuous wave focused CO2 Doppler lidar, is described relative to flight hardware settings and operating characteristics, and theoretical considerations. The algorithm (described in paper 1) is used to analyze measurements by the Laser True Airspeed System (LATAS) operated by the Royal Signals and Radar Establishment (RSRE) and Royal Aircraft Establishment (RAE), United Kingdom. Under optimum signal conditions, backscatter signals are located unambiguously and the backscatter coefficients are accurately determined. Under marginal or subthreshold conditions, with a degraded system sensitivity, false alarms (mistaking noise for signal) occur. Parametric studies show that the false alarm rate under these conditions depends on the search window size and the signal-to-noise ratio (SNR) threshold for valid signals. Carefully selected diagnostic parameters are used to estimate the combined sensitivity of the flight hardware system and algorithm. Less than 1% of backscatter measurements for flights over approximately 5 years have been found to be below the measurement sensitivity when the LATAS flight hardware controls were set for optimum sensitivity. ¿American Geophysical Union 1991