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NSIAD-85-60 1 (1985-06-24)

handle is hein.gao/gaobabnru0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 NATIONAL SECURITV AND JUNE24. 1985 INTERNATIONAL AFFAIRS DIVISION B-210119 General Thomas M. Ryan IH ~ t Commander, Military 127299 Airlift Command Dear General Ryan: Subject: Operating Chartered Flights from Commercial Airports has not Reduced Transportation Costs (GAO/NSIAD-85-60) In December 1978, the Defense Audit Service reported that millions of dollars could be saved each year by closing some Military Airlift Command (MAC) passenger terminals and by reduc- ing operations at others. It concluded that the MAC terminals were not an integral part of contingency operations and that MAC could handle most Department of Defense (DOD) needs by operating facilities at commercial airports. The concept was approved by the Congress, and the shift to commercial terminals began in October 1979. We reviewed the move of MAC chartered international flights and found that, except at one location, savings expected by moving have not materialized. In fact, in fiscal year 1982, the move cost DOD an estimated $1.5 million more because MAC con- tinued to operate military passenger terminals simultaneously with its terminal operations at commercial airports. Instead of closing or scaling down operations at military terminals, as envisioned in the shift to commercial terminals, they were main- tained for readiness purposes. Operating from both commercial and military facilities at the same time has resulted in additional operating costs. Since the Air Force maintained that the military terminals were needed for readiness purposes, our work was designed to determine if it would be advantageous from a cost perspective to close the com- mercial operations and return charter flights to military terminals. This is the position we took in a draft of this report released to DOD for comment. In commenting on our report, DOD officials disagreed with most of the findings and recommendations, particularly the cost figures. Their comments and our evaluation are discussed in the enclosure. (943521)

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