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PLRD-83-55 1 (1983-04-22)

handle is hein.gao/gaobabmxs0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 2054 PROCUREMENr, LOGISrIcs. AND RACINESS DIVISION B-210892 APRIL 22, 1983 The Honorable Caspar W. Weinberger The Secretary of Defense Attention: Office of GAO Report Analysis 121188 Dear Mr. Secretary: Subject: More Effective Use of Contract Airlift Could Reduce DOD's Transportation Costs (GAO/PLRD-83-55) The Department of Defense (DOD) is losing millions of dollars annually because of empty seats on aircraft under contract from commercial air carriers. The Military Airlift Command (MAC) is the single manager designated by DOD to provide international airlift from commercial carriers based on requirements submitted by each military service. The requirements include both military and civilian travelers. MAC spent $228 million in fiscal year 1981 and about $250 million in fiscal year 1982 to airlift DOD passengers on contracted international flights. We found that a significant number of empty seats existed on MAC-contracted international flights. There are two major reasons for these empty seats. Passengers do not show up for flights as scheduled, and the services apparently do not generate the volume of passengers anticipated at the time their requirements are submitted to MAC. In fiscal year 1981, MAC's no-show rate was 13.5 percent. In fiscal year 1982, the no-show rate climbed to 14.7 percent. We estimate that empty seats caused by no-shows cost $13.5 million annually. Our estimate of savings has been reduced to give consideration to overbookings and passengers who walk in and actually use seats that were intended for use by no-shows. In addition, we estimate that underutilization of seating capacity for reasons other than no-shows costs DOD another $13.0 million annually. (943369) ~f ~Z

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