The NPC pilot's piloting skills and morale affect these behaviours:
Counting attackers on enemy targets: Pilots of lower skills and morale overly count attackers - judging their targets to be of lower risk than they are.
Engage position: The engage position of pilots with lower skills and morale are closer to the target - specifically, 75% of their combat range instead of 100%.
Step forward distance: Pilots of lower skills and morale step forward 2 km at a time instead of 1 km at a time.
Shield percentage for withdrawal: Pilots of lower skills and morale will withdraw when their shields are at 75% instead of at 90%.