No it isn't!
All the human vs human player tests I ran failed to get me friendly fire incident, but as soon as I switched to human vs AI I had 1 aircraft dropping it's load on my own troops. It did NOT specifically target them, just dropped it's ordnance on their location (which was way off the allocated area). Game was 2003, US vs North Korea, A10's (with mixed load including Mavericks) and Pariots with ammo carriers next to them.
Mike, did you have any aircraft actually target your own units or did it just drop it's ordnance on their location (ie was it attacking the hex they were in or the unit itself)?