LETTER TO JARRELL, CRAIG D. FROM SENATOR JACKSON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000300210014-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: July 27, 2001
• Sequence Number: 14
• Publication Date: July 20, 1972
• Content Type: LETTER

Approved For Release 2006/09/25 : CIA-RDP74B00415R000300210014-7
Mr. D. Craig Jarrell
Director of Flight Training
LAO Air Development'
P. O. Box 233
Wattay Airport
Vientiane, Laos
GLC 20 July 1972
Dear Mr. Jarrell:
When I received your letter of 12 June 1972 regarding your
company's proposals for operating aircraft in Laos and your concern that
Air America is being given some type of preferential treatment, I looked
into the matter closely.
I am advised that the only proposal which USAID received from
your company for a 10 place light twin engine aircraft was contained in a
letter written the day after you wrote to me offering a Cessna 402 at $225
wet wing per flight hour based on 100 hour monthly usage. The 100 hour
monthly requirement was beyond USAID's needs. It is my understanding
that USAID's need for administrative aircraft were fully met by the use
of Air America's Volpar aircraft which apparently is the plane mentioned in
your letter.
Officials I have contacted are unable to understand the figure of
$385 per flight hour quoted in your letter as the Air America charge for
this aircraft. Under contract AID 439-342, which expired on 30 June 1972,
USAID paid Air America a monthly price of $18, 000 for 65 flying hours
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 Approved For Release 2006/09/25 : CIA-RDP74B00415R000300210014-7
($277 per flight hour) with the contractor furnishing pol, and $137 for every
wet wing flight hour over 65 in any given month. If the Volpar aircraft had
been needed for 100 hours per month Air America's hourly price would have
been $229.' In fact, USAID's requirements barely reached the 65 hour
minimum guarantee. It is assumed that a proposal from Lao Air Develop-
ment based on 65 hour monthly usage minimum would equal or exceed the
Air America price.
I understand that air contract consolidation is contemplated and final
contract prices are awaiting October negotiations. If there is anything
further that you would like me to look into in that connection, please let
me know.
Approved For Release 2006/09/25 : CIA-RWP74B00415R000300210014-7