It does, but there are kinds of attacks were it is far less likely and you would be able to safely pass through the enemy aircraft 99% of the time.
What Lusche said is true. The higher the ping time between players, the less chance of both detecting a collision. It would be safe for you to dive through his bombers too, but more Americans play than anybody else, so our odds would be least favorable.
Allow me to elaborate:
If you only get a collision result if both collide on their screens, a collision occurs only when there is only a small difference between both "realities".
The amount of difference is a result of lag. Or more precicely: Total lag, which is more or less the sum of both players lag.
A simplified example:
Assume US players have 30ms lag, European players 150ms lag.
So if two US players fight, total lag = 60ms. Reltaive small difference between Front Ends, high risk of mutual collision
If one US player fights one European, total lag = 180ms. Much bigger difference, much smaller risk of mutual collision.
Two European players: Total Lag = 300ms
Very big difference between both Front Ends. Very small risk of mutual collision.
Now note that only a US player would have at one point a high collision risk - when he's fighting a countryman. A Euro player does not have the same risk, as in all of his fights there will be a relatively high total lag.