MINUTES OF MEETINGS OF EXECUTIVE COMMITTEES OF AIR AMERICA, INC. AND AIR ASIA COMPANY LIMITED MARCH 12, 1968

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 05261827
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: March 9, 2023
• Document Release Date: July 15, 2021
• Case Number: F-2017-01685
• Publication Date: March 12, 1968

APPROVED
March 26, 1968
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MINUTES OF MEETINGS
OF
EXECUTIVE COMMITTEES
OF
AIR AMERICA, INC. AND AIR ASIA COMPANY LIMITED
March 12, 1968
Meetings of the Executive Committees of Air America, Inc. and
Air Asia Company Limited were held on March 12, 1968 and the following
matters were considered:
1 - Approval of Minutes:
(a) Meetings of Air America, Inc. and Air Asia Company Limited
Executive Committees of January 19, 1968: The minutes of the meetings
of the Air America, Inc. and Air Asia Company Limited Executive Com-
mittees of January 19, 1968 were approved.
(b) Meeting of Air America, Inc. Board of Directors of February
20, 1968: The draft minutes of the meeting of Air America, Inc. Board
of Directors of February 20, 1968 were approved for submission to the
Board.
(c) Meeting of Air Asia Company Limited Board of Directors of
February 20, 1968: The draft minutes of the meeting of Air Asia Company
Limited Board of Directors of February 20, 1968 were approved for sub-
mission to the Board.
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2 - Reports:
(a) Personnel Statistics - December, 1967: Personnel increased
by 108 during December, 1967 to a total of 11,104 on board. American
personnel totalled 1,197 at the end of December up six over the previous
month. Flight personnel totalled 604 down three for the month. Technical
service personnel increased by 84 to a total of 6,578 and fiscal personnel
increased by twelve to a total of 309. Vacancies totalled 1,566 down 112
from November. It was pointed out that for the most part the vacancies
are to take care of existing personnel attrition. Further, the vacancy
positions are being reviewed in light of current operations and a number
are being cancelled.
(b) Operating Statistics - January, 1968: Flying activity for
January totalled 23,605 hours or 761 hours per day as compared with
a total of 22,036 hours or 711 hours per day reported for December.
Flying was down substantially during February due to Tet and military
activity in Viet Nam, however, results during the first part of March
are back to January levels. Total revenue load factor for scheduled
operations was 42% for January as compared with 43% for January, 1967..
Customer aircraft maintenance was up 12% with 184,000 skilled man-
hours reported for January, 1968 as compared with 164,000 for December,
1967. The total skilled man-hours expended in January at the main
maintenance base was 591,000 up 8% from the 548,000 expended in
December. Skilled labor overtime was 20% of regular hours worked
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in January, 1968 as compared with 17% for December, 1967.
(c) Financial - January, 1968: Financial results for January,
1968 show transport and other operating revenue of $5,271,000 and
customer maintenance revenue of $702,000. Total gross revenue for
January was $5,973,000 somewhat above the past ten month average
of $5,603,000. Included in January revenue was $450,000 covering an
estimated retroactive rate adjustment under Contracts AF49(604)-4395
and AID-439-342 of which only $80,000 actually applies to January. For
the first ten months of the Companies year total revenues were $56,030,000
which is 3% above the revenues of $54,378,000 for the same period during
the previous year. Air Asia Company Limited had a net income before
income taxes for January of $2,643,000 which includes non-operating
income of $2,426,000 representing the gain on the sale of the Convair
880 and spare parts delivered to date. It was pointed out that the entire
gain from the sale of the Convair 880 was reflected as income to Air
Asia Company Limited whereas one-half of the gain should have been
reflected as income to Air America under the Charter Agreement. For
the first ten months of the fiscal year Air Asia Company Limited's net
income before income taxes was $3,406,000 up 5% from the $3,259,000
for the same period during the previous year. However, the principal
portion of the income for the first ten months was represented by the
gain from the sale of the Convair 880 and a comparison of net operating
income before taxes shows $979,000 for the first ten months of this fiscal
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year down 71% from the $3, 362,000 for the first ten months of the
previous fiscal year. Air America's net income before income taxes
for the first ten months of the fiscal year was $328, 000 as compared
with $3,192, 000 for the same period last year.
3 - Operating Forecast for Period April 1968 Through March 1969:
It was reported that the operating forecast for the year April 1, 1968
through March 31, 1969 which is normally reviewed at this meeting
has not yet been received from the Field.
4 - Major Damage to Aircraft: Since the last Executive Committee
meeting on February 19, 1968, the following reports of major aircraft
damage were received:
Date Aircraft Cause
Feb. 22 UH- 34
Heli-
copter
H52
Mar. 7 Bell
204B
Heli-
copter
N8539F
leased
Hit by large
caliber shell
while off
loading at
Laos pad.
Forced land-
ing in unsecure
area aftet tail
struck trees'
Damage
Aircraft
burned - parts
salv-agable
Injured
Aircraft again
available to
customer
� Flight
mechanic -
burns and
shrapnel
wounds
Although dam- None
age minor
aircraft order-
ed destroyed
due to unsecure
area:,
In addition to the foregoing reports of major damage the following reports
involving minor damage were also received. February 13, C-45 aircraft
N9073Z sustained damage to both props and the right wing tip when the
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aircraft nosed up after the pilot applied the brakes in attempt to avoid
a collision with an AF fuel truck. The fuel truck had driven in front
of the aircraft while the aircraft was taxiing to the ramp at Saigon.
February 15, Porter aircraft N393R struck a newly installed AF fence
during landing at Nghia Nanh, Viet Nam damaging the right dynamic
counter balance and aileron. Mechanics made temporary repairs and
the aircraft was flown to Da Nang. February 18 and 19, mortar or
rocket fire at Saigon resulted in minor damage to three parked Air
America aircraft. UH-34 helicopter H54 made a safe autorotation
landing after being hit by ground fire in the engine compartment and
cockpit on February 26, and was subsequently recovered on March 4.
February 27, UH-34 helicopter H57 sustained minor damage to the tip
of the main rotor blade while hovering in thunderstorm. February 27
�and 28, nine aircraft were damaged at Saigon as a result of rocket fire,
of the aircraft were back in service within two days.
The other
two, a Helio and a Ten Two, were back in service on March 3 and March
10, respectively.
5 - SEA Contract Flying: It was reported that flying activity in South-
east Asia has increased during the first part of March from the
disruptions in February resulting from Tet and the military activity.
However, there continues to be a shortage of skilled labor and the
curfew and other restrictions at Saigon are interfering with normal
operations.
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The Executive: Committee then received a report on the
aerial survey project. During the ten month period ended December
31, 1967 Air America flew 7,940 hours in the aerial survey project
out of the 8,054 scheduled hours. Only 114 hours or 1.4% of the
scheduled coverage was lost during the ten month period. From
January 1 through March 8, 1968 the record was even better with
only ten minutes lost a flown.
6 - Volpar N91284 Accident Claims: It was reported that settlements,
subject to approval of the families and the courts, were negotiated with
the attorneys representing the families of Doctors Beattie, Conroy and
Pickett, who were three of the eight educators killed in the March 23,
1967 Volpar accident in Viet Nam. The Beattie case was settled for
$260,000, the Conroy case was settled for $230,000 and the Pickett
case was settled for $135,000. Settlements have now been reached
with respect to six of the eight educators killed in the accident. 0
the total $1, 391, 695 settlement cost for these six cases Air America
will pay $941, 695 and the insurance company will pay $450, 000. It
is anticipated that this will be the extent of Air America's liability for
the death of the eight educators as it is believed that the remaining two
can be settled within the $75, 000 per passenger insurance coverage.
There being no further business to come before the meeting,
on motion duly made and seconded, it was adjourned.
Repytfully submitted,
James H. Bastian
Secretary for the Meeting
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