Review of Inter-Island Airlift Service in the Far East, World Airways vs. Military Airlift Command

Cost comparisons were made on the operation of the inter-island military airlift by World Airways and the Military Airlift Command (MAC). Although World Airways had run the airlift service economically and had exceeded the minimum efficiency requirements of the contract, it was determined that the MAC ran the service more economically and almost as efficiently. Total cost estimate for fiscal year 1976 operation by World Airways would have been $4.6 million, using Civil Aeronautics Board rates and statute miles and the average fuel surcharge levied the last 6 months of 1975. In addition, the Government would have incurred the cost of having MAC fly just to maintain its war readiness. Therefore, although the MAC costs for running the service were $9.4 million, about $9 million can be considered necessary training expenses. World Airways' contention that the Civil Reserve Air Fleet would be adversely affected is invalid, since none of the needed long-range planes would be withdrawn.