Fly America Act Rules & Regulations
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FLY AMERICA ACT - RULES AND REGULATIONS
In order to help clarify the basic rules and
regulations of the Fly America Act, we have published
this brochure to assist those people traveling on
international trips being paid for by the U.S.
Government. Most of this information is taken directly
from Section 301-3.6 of the Federal Travel Regulations
as amended on February 23, 1990 and effective on March
23, 1990.
USE OF UNITED STATES AIR FLAG CARRIERS
1. Definitions
1. The Fly America Act - the "Fly
America Act" refers to the provisions enacted by
section 5 of the International Air Transportation Fair
Competitive Practices Act of 1974 (pub. L. 93-624,
January 3, 1975), 40 U.S.C. App. 1517, as amended by
section 21 of the International Air Transportation
Competition Act of 1979 (Pub. L. 96-192, February 15,
1980), 94 Stat. 43.
2. U.S. Flag Air Carrier - the term
"U.S. flag air carrier" means an air carrier holding a
certificate under section 401 of the Federal Aviation
Act of 1958 (49 U.S.C. App. 1371). Foreign air carriers
operating under permits are excluded.
3. United States - for purposes of
the Fly America Act, "United States" means the 50
states, the District of Columbia, and the territories
and possessions of the United States (49 U.S.C. App.
1301 (38)).
4. Gateway Airport in the United States
- a "gateway airport in the United States" means the
last airport in the United States from which the
traveler's flight departs, or the first airport in the
United States at which the traveler's flight arrives.
5. Gateway Airport Abroad - a
"gateway airport abroad" means the airport abroad from
which the traveler last embarks en route to the United
States or at which the traveler first debarks incident
to travel from the United States.
2. General Requirements of the Fly America Act
The Fly America Act, 49 U.S.C. App. 1517, as
implemented in the Comptroller General's guidelines,
Decision B-138942, March 31, 1981, requires Federal
employees and their dependents, consultants,
contractors, grantees, and others performing United
States Government financed foreign air travel to travel
by U.S. flag air carriers:
1. Unless travel by foreign air
carrier is a matter of necessity as defined in paragraph
(b)(3) of this section, or
2. When U.S. flag air carrier
service is available within the guidelines in paragraphs
(b)(4)(5) of this section.
3. Service
Use of foreign air carrier service may be deemed
necessary if a U.S. flag air carrier otherwise available
cannot provide the air transportation needed, or use of
U.S. flag air carrier service will not accomplish the
agency's mission.
4. Availability of US Flag Carrier Services
1. General - U.S. flag air carrier
service is available even though:
A. Comparable or a different
kind of service can be provided at less cost by a
foreign air carrier;
B. Foreign air carrier service
is preferred by or is more convenient for the agency
or traveler; or
C. Service by a foreign air
carrier can be paid for in excess foreign currency,
unless U.S. flag air carriers decline to accept
excess foreign currencies for transportation payable
only out of these monies. (See also paragraph
(b)(5)(iv) if this section.)
2. Scheduling Principals - In
determining availability of U.S. flag air carrier
service, the following scheduling principals should be
followed unless their application results in the last or
first leg of travel to and from the United States being
performed by foreign air carrier:
A. U.S. flag air carrier service
available at point of origin should be used to
destination or, in the absence of direct or through
service, to the furthest interchange point on a
usually traveled route;
B. Where an origin or
interchange point is not served by U.S. flag air
carrier, foreign air carrier service should be used
only to the nearest interchange point on a usually
traveled route to connect with US flag carrier
service; or
C. Where a U.S. flag air carrier
involuntarily re-routes the traveler via a foreign
air carrier, the foreign air carrier may be used
notwithstanding the availability of alternative U.S.
flag air carrier service.
5. Guidelines for Determining Unavailability of
U.S. Flag Air Carrier Service
1. Travel to and from the United States
- Passenger service by a U.S. flag air carrier will not
be considered available when the travel is between a
gateway airport in the United States and a gateway
airport abroad and the gateway airport abroad is:
A. The traveler's origin or
destination airport, and the use of U.S. flag air
carrier service would extend the time in a travel
status, including delay at origin and accelerated
arrival at destination by at least 24 hours more
than travel by foreign air carrier;
B. An interchange point, and the
use of U.S. flag air carrier service would require
the traveler to wait 6 hours or more to make
connections at that point, or delayed departure from
or accelerated arrival at the gateway airport in the
United States would extend the time in a travel
status by at least 6 hours more than travel by a
foreign air carrier.
2. Travel Between Two Points Outside the
United States - For travel between two points
outside the United States, U.S. flag air carrier service
will not be considered to be reasonably available:
A. If travel by foreign air
carrier would eliminate two or more aircraft changes
en route;
B. Where one of the two points
abroad is the gateway airport en route to or from
the United States, if the use of the U.S. flag air
carrier would extend the time in travel status by at
least 6 hours more than travel by a foreign air
carrier, including accelerated arrival at the
overseas destination or delayed departure from the
overseas origin, as well as the gateway airport or
other interchange point abroad; or
C. Where the travel is not part
of a trip to or from the United States, if the use
of a U.S. flag air carrier would extend the time in
travel status by a least 6 hours more than traveled
by foreign air carrier including delay at origin,
delay en route and accelerated arrival at
destination.
3. Short Distance Travel - For all
short distance travel, regardless of origin and
destination, U.S. flag air carrier service will not be
considered available when the elapsed travel time on a
scheduled flight from origin to destination airport by
foreign air carrier is 3 hours or less and service by
U.S. flag air carrier would involve twice the travel
time.
4. Travel Finances Solely with Excess Foreign
Currencies - U.S. flag air carriers render
themselves unavailable by declining to accept payment in
foreign currencies for transportation services required
by certain programs or activities of the Government
which, under legislative authority, are financed solely
with excess foreign currencies which may not be
converted to U.S. dollars. In these instances, and
notwithstanding the provisions of paragraph (b)(4)(1)(C)
of this section, foreign flag air carriers that will
accept the required foreign currency may be used to the
extent necessary to accomplish the mission of the
particular program or activity. The statement of
justification required under paragraph (c)(3) of this
section must indicate that the transportation service
needed can be paid for only in excess foreign currencies
and that otherwise available U.S. flag air carriers
declined to accept payment in the foreign currencies.
USE OF FOREIGN FLAG AIR CARRIERS
1. Authorization or Approval -
Expenditures for commercial foreign air transportation on
foreign air carrier(s) will be disallowed unless there is
attached to the appropriate voucher a certificate or
memorandum adequately explaining why service by U.S. flag
air carrier(s) is not available, or why it was necessary to
use a foreign air carrier. Use of foreign flag air carriers
may be authorized or approved only when U.S. flag air
carrier service is not available as determined under the
guidelines in paragraph (b) of this section, or when foreign
air carriers are used under the reciprocal terms of an
appropriate bilateral or multilateral agreement as described
in paragraph (c)(2) of this section, or when use of foreign
air carriers is necessary under paragraph (b)(3) of this
section.
2. Air Transport Agreements - Nothing in
the guidelines in paragraph (b) of this section shall
preclude and no penalty shall attend the use of a foreign
air carrier which provides transportation under an air
transport agreement between the United States and a foreign
government, the terms of which are consistent with the
international aviation goals set forth at 49 U.S.C. App.
1502(b) and provide reciprocal rights and benefits.
3. Justification Statement - A statement
executed by the traveler or agency justifying the use of a
foreign flag air carrier for any part of foreign travel must
be entered on or attached to the travel voucher,
transportation request, or any other payment document. Each
request for a change in route or schedule which involved the
use of a foreign flag air carrier must be accompanied by a
statement justifying (see
Fly
America Form) such use.
4. Employee liability for disallowed expenditures
- Where the travel is by indirect route or the traveler
otherwise fails to use available U.S. flag air carrier
service, the amount to be disallowed against the traveler is
based on the loss of revenues suffered by U.S. flag air
carriers as determined under the following formula set forth
and more fully explained in 56 Comp. Gen. 209 (1977):
Sum of certificated carrier segment mileage, authorized
____________________________________________ x Fare payable
by Government
Sum of all segment mileage, authorized
MINUS
Sum or certificated carrier segment mileage, traveled
____________________________________________ x Through fare
paid
Sum of all segment mileage, traveled
CODE SHARING
On September 25, 1991, the Comptroller General released a
decision regarding the Code Sharing of flights by U.S. and
foreign flag carriers utilizing the equipment of the foreign
flag carrier. This is announced in Comp. Gen. File B-240956.
The decision is as follows:
The question in this case, presented by the Department of
State, is whether a U.S. flag air carrier's arrangement to
provide passenger service in international air
transportation on the aircraft of a foreign air carrier
under a "code-share" arrangement with the foreign air
carrier would meet the requirements of the Fly America Act,
49 U.S.C. App. 1517 (1988). Since it appears that such
service generally would be considered to be service by a
U.S. air carrier in international air transportation rather
than by a foreign air carrier, that service should also be
considered transportation provided by a U.S. air carrier for
purposes of the Fly America Act
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