Evergreen International Aviation

Overview

Evergreen International Aviation, Inc., based in McMinnville, Oregon, was a global aviation services company founded in 1960 by Delford M. Smith as Evergreen Helicopters. Initially focused on commercial helicopter operations for agricultural and forestry applications, such as spraying fertilizers, spreading seeds, and fighting forest fires, the company pioneered innovations like the PaceSpreader for precise aerial delivery. In 1972, Evergreen expanded into heavy-lift helicopters, acquiring Sikorsky S-61 and S-64 Skycrane models. In 1974, Smith acquired the assets of Johnson Flying Service, a Montana-based carrier with a supplemental air carrier certificate, and merged it with Intermountain Airlines, a known CIA front, to form Evergreen International Airlines in 1975. This marked the company’s entry into fixed-wing operations, initially with Lockheed L-188 Electra aircraft.

CIA

By 1978, Evergreen established a holding company, Evergreen Air, Inc., renamed Evergreen International Aviation, Inc. in 1980, and purchased 1,000 acres in McMinnville to create Evergreen Farms. The company ventured into passenger charters to Hawaii and the Caribbean but shifted to cargo operations after deregulation allowed major airlines to outprice Evergreen in passenger markets. In the 1970s, Evergreen acquired CIA-linked assets, including the agency’s aviation “skunk works” at Pinal Airpark, Arizona, where it performed specialized aircraft modifications, such as building Boeing Dreamlifters and servicing NASA’s Boeing 747 Shuttle Carrier Aircraft. Evergreen provided aviation services for the CIA, including transporting the Shah of Iran from Egypt to Panama and then to the U.S. in 1980, and conducted missions in El Salvador and Nicaragua. The company’s ties to the CIA were strengthened by senior executives with agency connections, though founder Smith publicly downplayed these links.

Cargo Operations

In the 1980s, Evergreen secured contracts with the U.S. military and United States Postal Service, operating cargo routes to destinations like Anchorage, New York, Chicago, Tokyo, Hong Kong, and Shanghai. During the 1991 Gulf War, Evergreen’s airlift of military supplies added $150 million to its revenues, and its helicopters supported firefighting at Kuwaiti oil wells. The company leased Boeing 747 freighters to Japan Air Lines in 1991 and briefly operated New York-Beijing routes in 1993, though these were sold to FedEx in 1995 after competition from Chinese carriers. In 1998, Evergreen added service from Indonesia to New York via Columbus, Ohio, achieving revenues of $435 million by 1999, with the airline accounting for 65% of income. The company opened the Evergreen Aviation Museum in 2000, showcasing the “Spruce Goose” and other historic aircraft.

Financial

Financial difficulties emerged in the 2000s due to reduced Department of Defense contracts and the loss of CIA business. In 2010, Evergreen lost its Boeing Dreamlifter contract to Atlas Air. Facing bankruptcy and tax investigations, Evergreen sold its helicopter division to Erickson Air-Crane for $250 million in 2013, providing temporary liquidity. However, on November 8, 2013, Evergreen International Airlines announced it would cease operations by November 29, with its final flight occurring on December 2, 2013. On December 31, 2013, Evergreen filed for Chapter 7 bankruptcy in Delaware, listing assets of $100 million and debts of $500 million across seven entities. By Smith’s death on November 7, 2014, the company’s assets were sold, shut down, or under investigation. The Oregon Department of Justice probed allegations of commingling funds between Evergreen’s for-profit and nonprofit arms, including the Evergreen Aviation and Space Museum, which continued operating independently.

CIA DETAIL

Evergreen International Aviation, Inc. had well-documented ties to the Central Intelligence Agency (CIA) through its operations as a contractor and its acquisition of assets from CIA-linked entities. While Evergreen was involved in numerous legitimate aviation activities, including commercial helicopter services, cargo transport, and military contracts, its CIA connections have been associated with several controversial operations that have been characterized as scandals due to their covert nature, ethical implications, or association with human rights abuses.

1981-1983:

From 1981 to 1983, Evergreen Helicopters operated under a U.S. Agency for International Development (USAID) contract to repair war-damaged power lines in El Salvador during the country’s civil war. Evergreen executive Robert D. Fox stated that the contract was secured through a State Department “aviation expert” reliably identified as a CIA agent with experience in Laos, Vietnam, and Thailand. During this period, the Salvadoran electrical utility was led by Colonel Nicolas Carranza, former commander of the Salvadoran Treasury Police, which was linked to death squads and human rights abuses. Roberto Santivanez, a former director of El Salvador’s intelligence agency, alleged that the CIA paid Carranza $90,000 annually during his tenure, implicating Evergreen in operations tied to a controversial figure and a conflict marked by significant human rights violations. Although Evergreen’s contract stipulated non-military purposes, pilot Kurt Kindermann reported performing tasks such as flying Salvadoran President José Napoleón Duarte to meetings with rebels and rescuing Duarte’s kidnapped daughter, suggesting involvement in politically sensitive missions.

In 1980, Evergreen transported the deposed Shah of Iran from Egypt to Panama and then to the United States, a high-profile CIA operation. This mission, referred to by Executive Jet Aviation due to their aircraft’s limited range, was part of U.S. efforts to manage the Shah’s exile during the Iran hostage crisis. The operation drew scrutiny for its political implications, as it supported a controversial figure whose regime was criticized for human rights abuses, and it underscored Evergreen’s role in sensitive CIA assignments.

A 1983 CBS News report identified Evergreen Air of Tucson, Arizona, alongside Southern Air Transport and Summit Aviation, as having flown CIA missions to Central America, including a specific April 9, 1983, flight by Southern Air Transport delivering 22 tons of small arms to a Honduran military base. Evergreen’s vice president, Donna Nelson, denied these claims, calling them “totally an untruth” and threatening legal action, but the report contributed to public suspicion of Evergreen’s CIA ties. The company’s involvement in Central America during the 1980s, particularly in El Salvador and Nicaragua, aligned with U.S. support for anti-communist forces, including the Contras, which was later central to the Iran-Contra scandal. While Evergreen’s specific role in these missions is less documented, its presence in the region raised concerns about its complicity in covert arms deliveries and support for regimes linked to human rights abuses.

1988

In 1988, Evergreen’s founder, Delford M. Smith, acknowledged an agreement under which his companies provided “occasional jobs and cover” to foreign nationals the CIA sought to extract from or insert into other countries. This admission, reported by The Oregonian, confirmed Evergreen’s role in facilitating CIA covert operations, such as exfiltrating assets or defectors, which often operated in legal and ethical gray areas due to their secretive nature and potential involvement with controversial figures or regimes. Smith’s statement, while downplaying broader CIA ties by claiming ignorance of specific operations, fueled perceptions of Evergreen as a CIA front.

Evergreen’s acquisition of CIA-linked assets in the 1970s, including Montana’s Johnson Flying Service and the CIA’s aviation “skunk works” at Pinal Airpark in Marana, Arizona, further tied the company to the agency. The Pinal Airpark facility, previously part of the CIA’s Air America operation, was used by Evergreen for specialized aircraft modifications, including building Boeing Dreamlifters and servicing NASA’s Boeing 747 Shuttle Carrier Aircraft. Evergreen also purchased assets from Intermountain Airlines, a known CIA front, in 1975, integrating them into Evergreen International Airlines. These acquisitions, detailed in declassified records, positioned Evergreen to inherit Air America’s role in CIA covert operations, particularly in Southeast Asia and Central America, raising questions about the extent of its involvement in activities like arms trafficking or covert logistics that could be linked to regional instability.

Conclusion

Evergreen’s CIA connections are well-documented through declassified records, media reports, and Smith’s own statements, particularly regarding the Shah’s transport, Central American missions, and asset acquisitions. The scandals arise from the company’s association with controversial CIA operations, including support for regimes linked to human rights abuses in El Salvador and potential involvement in arms deliveries in Central America, which align with the broader Iran-Contra controversy. However, specific evidence tying Evergreen to the most egregious aspects of these operations (e.g., direct participation in death squad activities or Iran-Contra) is limited, and the company’s denials, such as Nelson’s response to the CBS report, suggest an effort to distance itself from public scrutiny. The ethical concerns stem from Evergreen’s willingness to undertake sensitive CIA missions in conflict zones, which often supported U.S. geopolitical goals at the cost of regional stability or human rights.

Sources:

Wikipedia (Evergreen International Aviation, Evergreen International Airlines), FundingUniverse, SourceWatch, oregonlive.com, company-histories.com, rzjets.net, Evergreen Aviation websiteweb:0,1,2,5,6,7,8,10,12,14 Wikipedia (Evergreen International Aviation, Evergreen International Airlines), SourceWatch, oregonlive.com, The New York Times, Encyclopedia.com, CIA FOIA recordsweb:0,1,2,7,8,9,11,12,13,15