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B-138942 1 (1971-10-06)

handle is hein.gao/gaobabkpg0001 and id is 1 raw text is: IIESrMCTED - Not to be fW'.ed do AceouintA office hxopt- oni te b&*!s a Ic app Val 0 RELEASE6 COMPTROLLER GENERAL OF ED AT WASHINGTON. D.C. 20346 SHIIEIIU III I II 1I I1 III U C T B-138942 D.C.320548 Dear Senator Mathias: In your letter of May 24, 1971, you requested that we review and comment on a copy of a military cargo fact sheet concerning the relationship between the civil and the mili- tary air transport systems. The opinion expressed in the fact sheet was that only through legislation would the proper balance between civil and military air transportation be ensured and that action programmed to achieve this objective was in motion. On May 11, 1971, House bill 8264 and Senate bill 1821 were in- troduced to provide the type of legislation suggested in the fact sheet, which is that a minimum of 50 percent of mili- tary cargo be placed with U.S. commercial carriers. The Chairman of the Senate Subcommittee on Aviation, Com- mittee on Commerce, in a press release dated July 20, 1971, stated that the Committee temporarily had deferred action on Senate bill 1821 because the Air Force had indicated that, in fiscal year 1972, international cargo business for the civil reserve air fleet would be increased from $43 million to about $85 million. In addition, the Air Force has indicated that the Army is about to begin a major new shipment by air program that should increase air cargo tonnage. As a result of these developments, the Committee feels that it is not now timely to report specific set-aside legislation when efforts are under way to ameliorate the situation by voluntary changes in procurement practices. Enclosed is a copy of our comments to the Chairman, Com- mittee on Commerce, U.S. Senate, on Senate bill 1821. In summary, we commented that less than 10 percent of military cargo currently was allocated to the commercial air fleet and that, at the same time, commercial air cargo traffic had declined as a result of the current world economic condi- tion. These facts make it difficult for airlines to maintain commitments of aircraft to the civil reserve air fleet and to obtain additional aircraft said to-be neged i-nthe event of national emergency. Although the 50-percent requirement 50TH ANNIVERSARY 192-197'~ 07 /1-

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