True, but it just makes it easier to explain why it has a "Y" at the end of it. I could have very well used "Army" but hey, I honestly don't care.
There also is this note:
http://www.anime.net/macross/story/encyclo...pacy/index.html
So in a sense, yes, I can get away with calling a "Space Navy" (since all I was doing was explaining the "y" in SPACY, but i could have also used Space Army)