Samuel,
In the late 1980s there was an extremely talented Huey pilot in the RNZAF who came 'out' (the hint was he was living with a male cabin attendant) and expected - indeed hoped - to be chucked out. A pragmatic approach at the time - in spite of the usual dismissal - was to post him to be an Andover Captain, after the necessary conversion, as there was a shortage of aircrew. He stayed in for a couple more years, and occasionally brought his partner to informal mess events. No problems - the Flt Lt was a respected operator and a nice bloke and everyone at the time took his sexuality 'in their stride'.
The policy changed in teh early 1990s, if I recall correctly.