HOW THE CIA RUNS SECRET AIRLINE IN ASIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000400160005-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: June 27, 2005
• Sequence Number: 5
• Publication Date: October 18, 1971
• Content Type: NSPR

Approved For ReIq %W fV : CIA-RDP74B00415R000400160005-2
18 OCT. 1971
By JAMES rV1c 'Al TNEY
Herald Was; futon $ur2au
\VASHINGTON ?--- The
CIA, in supersecrecy, is run-
ning an airline in Southeast
Asia with as many planes
as Pan American - and
about as many employes as
the CIA itself - some
18,000.
Although virtually un-
known to the U.S. public,
which pays the bills,'it ranks
in numbers of planes among
the half-dozen largest U.S.
air carriers.
The airline is' called Air
America Inc., and it probably
is the world's most secretive
airline.
Its pilots - supposedly'
"civilians" -- have manned
T28 fighter-bombers on raids
in Laos, according to the
Pentagon papers.
THE Y OFTEN fly hazard-
ous missions in Laos,, carry-
ing troops into battle --- and
the wounded out.
They play the role of a
part-time air force to many
"irregular" of guerrilla fight-
ers for a secret, CIA-spon-
sored guerrilla army in Laos.
Says a former CIA official:
''Without Air America there
could never have been a Lao-
tian war."
Air America also carries
freight, owns and operates
Asia's largest aircraft mainte-
nance facility, carries passen-
g;ers, evacuates refugees,
drops rice to the starving -
and carefully hides its activi-
ties.
,THE STORZY of Air Ameri-
ca, in f,ict, is one of the riiost
intriguing of the U.S. in-
volvement in Southeast Asia,
shrouded in Oriental mys-
tery. .
its mysteries, however,
have now attracted the atten-
tion and concern of con-
gressional investigators.
For the first time they
have become fascinated with
Air America - as well as
with other CIA-related air-
lines that long have provided
"cover" for clandestine U.S.
activities. s
Air America simply is the
largest of a highly complex
Structure Of Secret, and semi-
secret, CIA-related corpora-
tions with interests in air
power.
"Nobody on Capitol Hill
seems to know exactly what
Air America does," says one
investigator.
"But I can guarantee you
that we're trying to find
out."
THE CORPORATION has
every outward sign of com-'
pletd legitimacy - a Wall
Street board of directors,
thickly carpeted offices in
Washington, neatly marked
and maintained aircraft *in.
the Far East often doing yeo=
man service for the U.S.-
gov-ernment. .
Many of the services of
Air America are completely'
open in' Laos, Vietnam, Thai-
land, Taiwan, ' Hong Kong
and Japan. '
But then there. is. the co-
vertside.
`-Says Victor Marchetti, a
forniN, special assistant to'
the CIA's chief of plans, who
quit in ".disenchantment" and'
is now cooperating with con-
gressional committees: "The CIA created ' Air
America. We owned it. It did
our bidding.
"The top. man of Air Amer-
ica, the man who built' it,
George Doole'Jr., was a CIA
roan."
MARCIIETTI recalls see-
ing an internal CIO memo
in which the officer in charge
of Air America's 'budget com-
plained. that the' airline had
become "so huge."
"The memo complained
that Air America had more
employes than the CIA and the ' CIA had 18,000,"
Marchetti says.
Marchetti recalls that at
one time the CIA made a
movie about its activities in
Laos --- hoping to get public
credit for its long-secret ac-
tivities.
"The big star of the movie
was Air America," lie says.
. "It carried the supplies arui
weapons into battle, support-
ed the guerrilla army of Moo
tribesman, and evacuated the
wounded." The movie was
never shown publicly.
THE IPEN TAGON papers
also furnished a flash of in-
sight into Air America's ac-,
tivit:ies.
In talking about the begin-
ning phases of the escalation
of the aerial war in Laos, the
published- version of the pa-
pens says: .
"A force of propeller-driv-
en T28 fighter-bombers,
varying from about 25 to 40
aircraft, had been organized
there (in Laos).
"The planes bore Laotian
Air Force markings, but only
some belonged to that air
force. The rest were manned
by pilots of Air America (a
pseudo-private airline run by
the CIA)' and by Thai pi-
lots . . ."
THE ]PAPERS also include
the text of a cablegram from
then Secretary of State Dean
Rusk to .the U.S. Embassy in
Vientiane, granting "discre-
tionary authority" to use Air
America pilots in T28 fighter,
bombers for' search and res-
cue flights.
Rusk mentioned "T28 op-
orations" as "vital both for
their military and psychologi-
cal effects in Laos" ?- but
did not discuss the full scope
of Air America's role.
The Pentagon papers make
clear that Air America pilots
were flying heavily armed
combat missions as long ago
as 1964.
OFFICIALLY, Air America
activities are supposed to be
limited to carrying cargo and
men on government con-
tracts.
Senate Foreign Relations
Committee investigators in
Laos in recent months have
been puzzled by the fact that
T28 fighter, bombers at
major airbases have been un-
marked except for serial
numbers on their tails.
dontinund
Approved For Release 2005/07/13 CIA-RDP74B00415R000400160005-2
 Approved For Release 2005/07/13 : CIA-RDP74B00415R000400160005-2
'They saw unmarked T26 "We have no coinbat air-
Lao Air Force bombers at Vi- He describes Air America
entiane, where Air America as a "private contract carti- craft," Velte says.
has a major facility; at Long Cr" which performs "contract He says Air America did
Tieng, a large CIA base; at flying operations." about 558 million worth of
Udorn, in Thailand., where "We provide the customer business this year, with a $3-
Air A ilerica has facilities, with the aircraft," says million profit before taxes.
Because the line works
and at Savanna'.chet. Velte.
"It seems clear," the inves- "1-Ie buys the use of the only on government con-
tigators wrote in a formal re- aircraft and the people who tracts it is not necessary to
port, "that this procedure operate it. He tells us what have a sales force,
would allow diem to be in he wants to do with it." Asked about connections
tercha.n"cd with other T28s." VELTE SAYS Air Ameri- with the CIA, Velte said:
ca's principal government "Well, I'm not in the CIA,
A S1rNATE staff member contracts are with the Agen- and I'm running this thing." .
explains what this was sup- cy for International Develop- Then he paused, smiled
posed to mean. "It means ment (AID) and the Air and said: "I remember a Pan
that nobody knows who is Force. Am executive who used to flying these planes and that Marchetti says there are say, ."Well, we get our busi-
ness where we can bet it.' "
great efforts are being made some secret contracts with
to make sure that nobody the CIA, but Velte does not ;'d;IUS among
can easily find out. ' acknowledge this. ? . THE g CONN:>Eon Capitol I among
"They might be flown by Velte disputes Marchetti 's
is that most Air America
the CIA, by the Lao' Air estimates of the number of
Force, by Air America. By employes working for Air money for secret activities is
buried in AID contracts.
Thais. By anybody. America. Ile says the airline, AID Adm}nttact John
"Wlio_can tell what nation- including subsidiaries, has Hannah, former president n
ality the pilot is or whom he about 8,500 employes today Michigan State University,
works for?" --- and has never had more has complained publicly
A!.` APO; -ICA was than 11,000. about CIA operations in AID.
formed in 1953 as a part of Marchetti's reply is that He was asked on a radio
a corporate complex in which Air .America hides the actual prograzit last year how lie
the C:1:1 played a major role. number of employes throug,i would respond to the charge
It is a wholly owned sub- a variety of devices --- most that the AID pro?ram was
sidia;y of the Pacific Corp., a ly by not counting foreign beam used as a cover for wI as
holding company with many nationals, ing used a Laos.
of the same officers and di- be. Said nsinlLa ~:ith tines-
rectors, Pacific was incur- VELTI: SAYS Air America pected Hanna: " wVJell, ith I just
pora:ed in Delaware with a operates a fleet of 170
capital have to admit that it is true
piral of $10,000. planes. Air America in turn owns This is about the size. of w . . ere a We ssociat have lead