Air America was an American passenger and cargo airline covertly owned and operated by the US government from 1950 to 1976. It was used as a dummy corporation for Central Intelligence Agency (CIA) operations in China. The CIA did not have enough work to keep the asset afloat and the National Security Council farmed the airline out to various government entities that included the US Air Force, US Army, USAID, and for a brief time France. Essentially, Air America was used by the US government covertly to conduct military operations, posing as a civilian air carrier, in areas the US armed forces could not go due to treaty restraints contained in the 1954 and 1962 Geneva Accords.
The Air America name was resurrected during the mid-1980s and used by a scheduled passenger airline based in Los Angeles which operated Lockheed L-1011 TriStar wide body jetliners with flights serving Baltimore (BWI), Detroit (DTW), Honolulu (HNL), London (LGW) and Los Angeles (LAX). This version of Air America formerly operated as Total Air.
In August 1950, the CIA, at the direction of the National Security Council, formed a Delaware corporation named Airdale. Airdale formed a subsidiary corporation named CAT, Inc. CAT purchased 40% of the assets of Civil Air Transport (CAT), an airline that had been started in China in 1946 by Gen Claire Lee Chennault (of Flying Tigers fame) and Whiting Willauer. Sixty percent remained with Chinese investors. CAT Inc. also formed Asiatic Aeronautical Company Ltd, a Republic of China company.
In 1957 Airdale changed its name to Pacific Corporation. CAT, Inc. changed its name to Air America, Inc. in 1959 after settling objections from Air France. Asiatic Aeronautical Company, Ltd changed its name to Air Asia Company, Ltd the same year. Civil Air Transport remained in existence throughout the tenure of Air America from 1950 through 1976, and for several years was the flag carrier for the Republic of China. This status was lost after a landing accident and China Airlines became the flag carrier. Civil Air Transport became a ticketing company used mostly for inter-company travel.
Air America's slogan was "Anything, Anywhere, Anytime, Professionally".:xix Air America aircraft, including the Curtiss C-46 Commando, Pilatus PC-6 Porter, de Havilland Canada DHC-4 Caribou, C-130, and Fairchild C-123 Provider, along with UH34D, Bell 204B, 205, and CH47C helicopters, flew many types of cargo to countries such as the Republic of Vietnam, the Kingdom of Laos, and Cambodia. It operated from bases in those countries and also from bases in Thailand and as far afield as Taiwan and Japan. It also on occasion flew top-secret missions into Burma and the People's Republic of China.
Air America's headquarters moved several times during its existence, including 808 17th St NW (1964), 801 World Center Bldg (late 1964), 815 Connecticut Ave NW (July 1968), and 1725 K Street NW (1972), all in Washington, DC. The principal continental US maintenance base was at Pinal Airpark, Marana, Arizona.
From 1959 to 1962 the airline provided direct and indirect support to US Special Forces "Ambidextrous", "Hotfoot", and "White Star", which trained the regular Royal Laotian armed forces. After 1962 a similar operation known as Project 404 fielded numerous US Army attachés (ARMA) and air attachés (AIRA) to the US embassy in Vientiane.
From 1962 to 1975, Air America inserted and extracted US personnel, provided logistical support to the Royal Lao Army, the Hmong Army under command of Royal Lao Army Major General Vang Pao, and combatant Thai volunteer forces, transported refugees, and flew photo reconnaissance missions that provided intelligence on NLF activities. Its civilian-marked craft were frequently used, under the control of the Seventh/Thirteenth Air Force, to launch search and rescue missions for US pilots downed throughout Southeast Asia. Air America pilots were the only known private US corporate employees to operate non-Federal Aviation Administration-certified military aircraft in a combat role.
By mid-1970, the airline had two dozen twin-engine transport aircraft, another two dozen short-take off-and-landing aircraft, and 30 helicopters dedicated to operations in Burma, Cambodia, Thailand, and Laos. There were more than 300 pilots, copilots, flight mechanics, and airfreight specialists based in Laos, Vietnam, and Thailand. During 1970, Air America delivered 46 million pounds (21,000 metric tons) of food in Laos. Helicopter flight time reached more than 4,000 hours a month in the same year.
Air America flew civilians, diplomats, spies, refugees, commandos, sabotage teams, doctors, war casualties, drug enforcement officers, and even visiting VIPs like Richard Nixon all over Southeast Asia. Its non-human passengers were even more bizarre on occasion. Part of the CIA's support operations in Laos, for instance, involved logistical support for local tribes fighting the North Vietnamese forces and the Pathet Lao, their local opponents. Forced draft urbanization policies, such as the widespread application of Agent Orange to Vietnamese farmland created a disruption in local food production, so thousands of tons of food had to be flown in, including live chickens, pigs, water buffalo, and cattle. On top of the food drops (known as "rice drops") came the logistical demands for the war itself, and Air America pilots flew thousands of flights transporting and air-dropping ammunition and weapons (referred to as "hard rice"):7 to friendly forces.
When the North Vietnamese Army overran South Vietnam in 1975, Air America helicopters participated in Operation Frequent Wind evacuating both US civilians and South Vietnamese people associated with the Saigon regime. The famous photograph depicting the final evacuation by Dutch photographer, Hubert van Es, was an Air America helicopter taking people from an apartment building at 22 Gia Long St used by USAID and CIA employees.
During the CIA's secret war in Laos, the CIA used the Meo (Hmong) population to fight Pathet Lao rebels. Because of the war against Pathet Lao rebels, the Hmong depended upon poppy cultivation for hard currency. The Plain of Jars had been captured by Pathet Lao rebels in 1964 which resulted in the Laotian Air Force not being able to land their C-47 transport aircraft on the Plain of Jars for opium transport. The Laotian Air Force had almost no light planes that could land on the dirt runways near the mountaintop poppy fields. Having no way to transport their opium, the Hmong were faced with economic ruin. Air America was the only airline available in northern Laos. "According to several unproven sources, Air America began flying opium from mountain villages north and east of the Plain of Jars to Gen Vang Pao's headquarters at Long Tieng."
Air America were alleged to have profited from transporting opium and heroin on behalf of Hmong leader Vang Pao, or of "turning a blind eye" to the Laotian military doing it. This allegation has been supported by former Laos CIA paramilitary Anthony Poshepny (aka Tony Poe), former Air America pilots, and other people involved in the war. It is portrayed in the movie Air America. However, University of Georgia historian William M. Leary, writing on behalf of Air America, claims that this was done without the airline employees' direct knowledge and that the airline did not trade in drugs. Curtis Peebles denies the allegation, citing the now deceased Leary's  study as evidence.
After pulling out of South Vietnam in 1975, there was an attempt to keep a company presence in Thailand. After this fell through, Air America was dissolved on 30 June 1976. Air Asia, the company that held all of the Air America assets, was later purchased by Evergreen International Airlines. All proceeds, a sum between 20–25 million dollars, were returned to the US Treasury. The employees were released unceremoniously with no accolades and no benefits even for those who suffered long-term disabilities, nor death benefits for families of employees killed in action.
Such benefits as were afforded came from worker's compensation insurance required by contracts with the US Air Force that few knew about. The benefits were not awarded easily. Many disabled pilots were ultimately compensated under the Federal Longshoremen's Act after lengthy battles with CIA bureaucrats who denied their connection to the airline for years. Many died of their injuries before they could be compensated adequately. Accident reports were said to have been falsified, redacted, and stonewalled by CIA officials who continued to deny any relationship to the events described in them.
During its existence Air America operated a diverse fleet of aircraft, the majority of which were STOL capable. There was "fluidity" of aircraft between some companies like Air America, Boun Oum Airways, Continental Air Services, Inc, and the United States Air Force. It was not uncommon for USAF and United States Army Aviation units to lend aircraft to Air America for specific missions. Air America tended to register its aircraft in Taiwan. They operated in Laos without the B- nationality prefix. US military aircraft were often used with the "last three" digits of the military serial as a civil marking. The first two transports of Air America arrived in Vientiane, Laos on 23 August 1959. The Air America operations at Udorn, Thailand were closed down on 30 June 1974. Air America's operating authority was cancelled by the CAB on 31 January 1974.
Air Asia was a wholly owned subsidiary of Air America which provided technical, management, and equipment services for Civil Air Transport of Formosa. Air Asia was headquartered in Taipei and its main facilities were in Tainan, Taiwan. It is now located in the Tainan Airport. It is the only surviving member of the Pacific Corporation, but currently it is owned by Taiwan Aerospace Corporation and is no longer related to the Central Intelligence Agency.
Air America began flying opium from mountain villages north and east of the Plain of Jars to Gen. Vang Pao's headquarters at Long Tieng.
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