CIA Reading Room cia-rdp88-01315r000300120008-1: CIA AIRLINE PLOT ALLEGED IN $1 BILLION SUITS
: ~ STAT Approved For Release 2004/10/13 : CIA-RDP88-01315R000 = THE DAILY OKLAHOMAN OKLAHOMA CITY 26 June 1979 ‘By Paal Wenske Two federal suits asking combined cam- ages of over $1 billion were filed Monday al- laging the government , ~~ through the Central. Intelligence Agency —~' conspired to gain an. unfair aviation advan-: tage over other, cornmerical airlines. The suits, filed in Ok-} lahnoma City federal: court, claim “The gov-! ernment of the United States of America was: inextricably involved | in this conspiracy by} the CIA and various of | jts agents and direc-| tors.” ‘ _ One of the suits was. ed by U.S. Overseas, ae Inc., composed ; of five other aviation! fierms. .The. other was} filed by California Air; ‘Charter Inc. and Holi-: day Airways Inc. The suits claim fed-! eral aviation agencies! and numerous airlines! conspired “to gain un-| just profit for their own, benefit and. to the uilti-! ruate detriment of the: plaintiffs and the con-) sumers of commerical aviation services of our| . country ters _ hey : ‘claim: the all leged * | conspiracy! deprived. …
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: ~ STAT Approved For Release 2004/10/13 : CIA-RDP88-01315R000 = THE DAILY OKLAHOMAN OKLAHOMA CITY 26 June 1979 ‘By Paal Wenske Two federal suits asking combined cam- ages of over $1 billion were filed Monday al- laging the government , ~~ through the Central. Intelligence Agency —~' conspired to gain an. unfair aviation advan-: tage over other, cornmerical airlines. The suits, filed in Ok-} lahnoma City federal: court, claim “The gov-! ernment of the United States of America was: inextricably involved | in this conspiracy by} the CIA and various of | jts agents and direc-| tors.” ‘ _ One of the suits was. ed by U.S. Overseas, ae Inc., composed ; of five other aviation! fierms. .The. other was} filed by California Air; ‘Charter Inc. and Holi-: day Airways Inc. The suits claim fed-! eral aviation agencies! and numerous airlines! conspired “to gain un-| just profit for their own, benefit and. to the uilti-! ruate detriment of the: plaintiffs and the con-) sumers of commerical aviation services of our| . country ters _ hey : ‘claim: the all leged * | conspiracy! deprived. the America: people of “low cost. high. quality. commer- cial air transportation”: for years and caused a; Joss to the nation’s in-i dustrial. development, “measured in the bil-; lions of dollars.” ~ The CIA’s involve-! ment, according to-the suits, “was apparently| the agency’s effort to! develop sources of in- core to finance clan- clestine activities with- out the inconvenience of congressidpprowed sight” from 1938 to the present. Thnk Ul iktae Ula ae ce em: Airline Plot Al vately held” commeri-' cal airlines, and were: allowed “‘to souge’ greater profits from; ‘military airlift con-, tracts as well as exces-. -Sive profits from con-: tract air services from, the private sector.” 4 While the govern-{ ment allegedly forced| . the complaining avia- tion firms to’ comply with arbitrary regula-- tions and security con-. siderations, the govern-/ ment-run firms were! “allowed a ‘hands off’ Status” the suits state. | Besides the United; States and the CIA. ants include the Civil Aeronautics: Board; Federal Aviation Ad- ministration, Depart: ment of Defense; - U.S. Army, Navy and Air Force; Air America inc.; Southern Air Transport Inc.; Air Asia! Ltd.; and Civil Air! Transport Inc. _ | Also, Evergreen. In- ternational Airlines! Inc.; Trans Internation-| al Airlines Inc.; World , Airways Inc.; Capitol Airways ‘Ine.; Overseas National Airlines Ine; Continental Air Ser- J vices Inc.; Flying Tiger Air Services Inc.; Na- ‘tional Air Carrier Asso- ‘ciation, and 10: named individuals... . U.S. Overseas Mice lines alleges it consti- tuted the most success-! ful of what is known in: the trade as supple- mental airlines from 1946 to 1964 when it in- curred a loss of $135 million in business be- & -other named defend- ; use of ave alleged spl he comoanies under , ie umbrella of the firm flew iarge four-ene ; gine transoort aircraft., California Air Char-' ter Ine. made flights: within the country and to the Virgin Islands between 1947 until Oc- tober 1959. Holiday Air- ways Inc. was formed | as an air carrier - to! gain rights to operaté | low cost charter flights, the suits state. - For Release 2004/10/13 : CIA-RDP88-01 315R000300120008-1 ILLEGIB