C0 07 71 916 I l u • ••• •4 ·CI ' -J b 1 b 3 EO 12958 1 4 b 25Yrs EO 12958 1 4 c 25Yrs EO 12958 1 4 d 25Yrs 12958 3 5 c EO 12958 6 2 c _ i-JI- --- IE-11- l n-Q t_EQ '------------ Intelligence Report OfficeofTransnanonallssues 29Julyl999 Ariana Afghan Airlines Assets and Activities I- - - - Arlana Afghan Airlines-Afghanistan's national carrier provides the Taliban with unspecified profits from its legitimate passenger cargo and charter services and has facilitated activity by terrorists and narcotics traffickers I I The airline conducts international and domestic air operations carrying passengers and cargo on scheduled and charter flights and is frequently used for military purposes • The airline has scheduled service to India Saudi Arabia and the United Arab Emirates and at least six domestic locations Ariana officials hope to expand the international flight network to Europe and the Far East • Arlana transports troops and supplies within the country as part of the Taliban's effort to win the ivil war • Most of the airline's revenue is activi · •· · · PPROVED FOR RELEASEL DATE 25-April-2012 ' - - C0P771 916 l · · z •• The airline has been utilized by terrorists and drug smugglers to conduct operations • Terrorist financier Usama 'bin Ladin has chartered Ariana aircraft to transport personnel and supplies · · - ' • I I I 2 CO0771 916 1 ' Afghanistan's National Airline Ariana Afghan Airlines-Afghanistan's national carrier--was founded in Kabul in 1955 with financial help from the Indian firm Indamer Indamer -_headed by American Peter Baldwin-owned 49 percent of the airline while the Afghan Government held the other 51 percent A year later Afghanistan signed the Air Transport Development Project Agreement with the United States and soon after P American Airlines bought Indamer's shares Ariana boasted a strong intematioi ial reputation in the 1970s because of that association The name Ariana was dropped in 1985 when Bakhtar Afghan Airlines took over the company to become the new national airline but was eventually restored in 1988 U The Taliban took operational control of Ariana coincident with its capture ofKabul in late September 1996 and retains de facto ownership 1 Since that time the airline has added to its fleet looked to expand its international flight networ and facilitated activity by terrorists and narcotics traffickers I · j J - •·t _ - ' 1 ·f r ···· r · · r · _ - J -•• _ - __ - -- - ---- C0 0771 916 ·l -- Ariana conducts internalional and domestic commercial air Jer itions carzying passengers cargo or m tr e airline is the only scheduled carrier known to be licensed for operation m or to although planes operated by international organizations-the International Committee of the · Red Cross the United Nations I I lo conduct flights there • The airline has scheduled Boeing 727 service from Kabul to Amritsar India thrice weekly and to Dubai and Jeddah Sau di Arabia once a week according to an aviation industry publication The flights to Amritsar are mainly for the transport of consumer goods according to a variety of sources US Embassy - - ·2· C0 0771 916 reporting suggests the Jeddah leg was stopped at the behest of the Saudi Government for at least a short time beginning in October 1998 k riana conducts c go service to Sharj UAEI · ·' • • The airline occasionally conducts charter service to Frankfurt on behalf of a German nongovernmental organization according to press and U S- E m b as i_ _ _- and has conducted fli ts to Saudi Arabia for the Ha·· • Ariana has an extensive-domestic network with flights going to Kabul Qandahar Herat Jalalaba Khows and Ma ar-i Sharif accord in to ress and US di fomatic re orts Ariana is looking to expand its international connections • Arrangements for service to Urumchi China and Ashgabat Turlanenistan have apparently been made but have yet to be implemented according to US Embassy and press reporting because the airline has not yet met safety and other unspecified conditions mandated by-the Chinese and Turkmen governments • Ariana officials would also like to establish regular destinations in Europe-possibly Frankfurt London or Paris-and Uzbekistan according to aviation industry reports j j - • s -·· ·- - C0 0771 916 l I ' i Like any airline Ariana requires maintenance and spare parts for its fleet to conduct operations To remedy this situation the airline has turned to various sources Ariana had a technical support contract with Air France when the Taliban took over its operations however the agreement was being re-negotiated in June 1997 because it bad become too expensive for Kabul according to a US Embassy report Press reporting from early 1999 suggests the relationship has been sustained albeit to an unknown degree The same Embassy • reporting indicates that Ariana was looking into the possibility of establishing a technical relationship with Brussels-based Sabena in mid-1997 most likely if the deal with Air France fell through More recently other press reporting indicates an aircraft service agreement was signed with the Amman-based airline Royal Jordanian I I • Press reporting indicates talks on spare parts acquisition were initiated between Ariana and Boeing in mid-1998 At least two deliveries-including one in early February 1999-have apparently resulted from the negotiations • A technical support agreement signed in October 1996 with Pakistan provided Ariana with a temporary operational and maintenance base at Karachi according to press reporting The contract had not been utilized C0 07 71 916 t ' much as of mid-June 1997 according to US Embassy reporting but the airline was lookin to use it more later that same ear to order arts ------- airline pro ably generates most o its revenue om cargo an c er services because few Afghans can afford airline tickets but passenger numbers are on the rise • Ariana•s international flight plan is based on projections of cargo-not passenger-demand according to the US Embassy in Islamabad As oflate 1996 the airline's cargo service was reportedly generating a substantial emg evaluated to ensure futore earnmgs nrofitandddi nal a tio routes were b · '· •·' I I C00771916 oc Overflight Fees The Taliban also receives a considerable amount of money from fees collected for overflights of Afghanistan by foreign aircraft Acc'ording to press reporting • Each overflight incurs a fee of $400 which is calculated by the International Air Transport Association IATA Up to 80 aircraft were overflying the country each day as of early May 1999 thus earning the Taliban about $11 7 million annually if the pace of flights continues The number of flights over Afghanistan may increase if the current civil war ends as the country straddles the shortest air route between Western Europe and East Asia • The overflight fees are banked in Switzerland and held in trust for spending on civil aviation requirements deemed necessary by the IATA Spending for military purposes is strictly forbidden Some of Afghanistan's money was recently used to complete short-term infrastructure projects--the installation of satellite-based phone fax and telex and aeronautical mobile and fixed services for the air traffic control center-at Kabul International Airport to bring its equipment up to international standards Other funds are slated for terminal repairs U Illicit and Other High-Interest Activity Since late 1996 terrorists narcotics traffickers the Taliban military and the Taliban's supporters have used Ariana to conduct operations • • Terrorist financier Usama bin Ladin has frequently chartered an Ariana 727 to move supplies and A fi lbaDislan and g personnel between 1he Individuals belonging to an Islamic extremist group flew the carrier from Afghanistan to the UAE in 1997 • Heroin and opium are frequently smuggled from Afghanistad I board Ariana aircraft 8 · • C00771916 t • C • • Ariana is used extensively for military purposes according to US diplomatic reporting as Taliban officials have made clear that the first priority for the airline should be doing its part to help Kabul win the current civil war The carrier is frequently tasked to transport troops and supplies within Afghanistan • Mone c - - ---lfransported on the carrier from the UAE to Afghanistan 1 --- J • L•••• - _ _ __ C00771916 t • ·· · •• - _ -- - ' '- · i • · • ••• C00771916· t • •✓ ' 11 C00771916 r • - -_· - - ·' - - - C00771916 CJ • • • •' I 13 ·' C9-D 7 71_9 l 6 '• 14 CQQ 71916 ·_ o C I lS J • o •• t •• •a • 0 • CQJ 71•916 CJ Ariana Afghan Airlines Assets and Activiti I ----- I 29 July 1999 Distribution External Office afthe Vice President 1 - Leon Fuerth Special Assistant to the Vice President for National Security Affairs Room 294 OEOB National Security Council Samuel Berger Assistant to the President for National Security Affairs West Wing White House I - James Steinberg Deputy Assistant to the President for National Security Affairs West Wmg White House 1 - Bruce Riedel Special Assistant to the President and Senior Director for Near East and South Asian Affairs Room 351 OEOB 1 - Donald Camp Director for Near East and South Asian Affairs Room 351 OEOB I - Richard Clarke Special Assistant to the President and Senior Director for Transnational Threats Room 302 OEOB 1 - William Wechsler Director for Transnational Threats Room 302 OEOB 1 - Mary McCarthy Special Assistant to the President and Senior Director for Intelligence Programs Room 300 OEOB r- Department of State 1 - Thomas Pickering Undersecretary of State for Political Affairs Room 7240 1 - Michael Sheehan Counter-Terrorism Coordinator Room 2507 1 - Edmund Hull Principal Deputy Counter-Terrorism Coordinator Room 2507 1 - Gibson Lanpher Senior Deputy Assistant Secretary for South Asian Affairs ·Room6254 1 - Elizabeth Jones Principal Deputy Assistant Secretary for Near Eastern Affairs Room6242 ' I - Edward Abmgton Jr Pnncipal Deputy Assistant Secretary INR Room 6531 ' 16 CQ0•7 71-916 I Ariana Afghan Airlines Assets and Activities I c _ __ _ _ 29 July 1999 I External continued f I 1 - David Marchick Deputy Assistant Secretary for Transportation Affairs Room5830 1 - William Brownfield Principal Deputy Assistant Secretary for International Narcotics and Law Enforcement Affairs Room 7333 - Department of Defense 1 - Walter Slocombe Under Secretary of Defense for Policy Office of the Secretary of Defense Room 4E808 Pentagon 1 - Franklin Kramer Assistant Secretary for International Security Affairs Room 4E838 Pentagon 1 - Alina Romanowski Deputy Assistant Secretary for Near East and South Asian Affairs Room 4D765 Pentagon · Joint Chiefs of Staff l - Rear Admiral Thomas Wilson Director for Intelligence Joint Chiefs of Staff Room IE880 Pentagon 1 - A John Redd Director for Strategic Plans and Policy Joint Chiefs of Sta ft Ro om 2E996 Eenta1 own 1 ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _-----i ·' I I ·• - ------ _ _ - - •- - •J _ l _ - - --- · - ___- t f' • • - _ _ 7 - r c - · - - _·-- 1 l c _ - - - - - --r · - •- - i7 - - · -i -- - - - - rr _ ·- -t - ·-- - - -- • • -- _ - --•---i--_ _ - _ -_-- c CQ Q 71916 Ariana Afghan Airlines Assets and Activities' --- ' External continued 29 July 1999 Department of Treasury 1 - Michael Romey Special Assistant to the Secretary for National Security Room MJ Defense Intelligence Agency 1 - Lieutenant General Patrick Hughes Director DIA Room 3E2 58 Peota®n National Securitv Ao-encv Department of Transportation I 18 ' - CO Q 71816 Ariana Afghan Airlines Assets and Activitie L--- 29July 1999 Distribution Internal 19 ·