Is it appropriate to use foreign air-carriers for travel on a federal award?

Fly America Act and Open Skies:

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Brown Bag Luncheon Series June 22, 2012

Presenters

SLIDE 2

John Maloney

Manager of Quality Assurance and Financial Compliance

Office of Grant and Contract Financial Administration

John.maloney@yale.edu

203-785-3077

Tracy R. Walters

Director

Office of Grant and Contract Financial Administration

tracy.walters@yale.edu

203-737-8355

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Travel on Federal Awards

University and Sponsor Policy

• Federal regulations require the customary standard commercial airfare (coach or equivalent), or the lowest commercial discount airfare to be charged to a federal sponsored award.

• The charging of business or first-class air travel is not permitted to a federally funded sponsored • except when coach or economy class is not reasonably adequate for

the traveler’s medical needs (such cases must be documented with a medical justification supplied by a primary care provider prior to confirming the reservation).

• The cost of the use of WiFi during an airline flight, pillows and blankets and preferred seating in coach cannot be charged to federally sponsored awards. In these cases, other University funds must be used for reimbursement.

• University Policy 3301 – www.yale.edu/ppdev/policy/3301/3301.pdf

• Travelers are required by 49 U.S.C. 40118, commonly referred to as the "Fly America Act," to use United States air carrier service for all air travel and cargo transportation services funded by the United States Government.

• Compliance with the Fly America Act is the responsibility of the traveler and department. Before making arrangements for air travel related to Yale business, find out: o where this travel is being funded and, when necessary, o ensure the booking is in accordance with the Fly America Act. If

you feel an exception is applicable, consult your business office or GCFA representative.

o To ensure compliance with the Fly America Act, travelers are encouraged to use the University’s preferred travel supplier Orbitz for Business by contacting them directly.

Travel on Federal Awards

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What you must know…

• Requires the use of a U.S. air carrier for all travel supported by federal funds unless:

o A U.S. air carrier is not available

o The trip qualifies for an exception as applicable under the Fly America Act

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The Fly America Act

Travel on Federal Awards

• For a complete listing of U.S. air carriers, refer to the following link:

http://www.nationsonline.org/oneworld/Airlines/airlines_north_america.htm

• Airtran Airways

• Alaska Airlines

• American Airlines

• Comair

• Continental Airlines

• Delta Airlines

• Frontier Airlines

• Funjet Air

• Go! Mokulele

• Great Lakes Aviation

• Hawaiian Airlines

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• JetBlue Airlines

• Mesa Airlines

• Midwest Airlines

• SkyWest Airlines

• Southwest Airlines

• Spirit Airlines

• Sun Country Airlines

• United Airlines

• USA 3000 Airlines

• US Airways

• Virgin America

Travel on Federal Awards

The Fly America Act (continued)

U.S. Air Carrier List

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The Fly America Act (continued)

Travel on Federal Awards

• Requires the use of a U.S. air carrier even if:

o A foreign air carrier service is less expensive, or

o A foreign air service is preferred by the traveler, or

o A foreign air service is more convenient.

• Code-sharing agreements with foreign air carriers, whereby American carriers purchase or have the right to sell a block of tickets on a foreign carrier, comply with the Fly America Act Regulations. The ticket, or documentation for an electronic ticket, must identify the U.S. carrier's designator code and flight number.

Travel reimbursed from a federal grant or contract must be booked using a U.S. carrier except in the following circumstances:

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Exceptions to the Fly America Act

Travel on Federal Awards

• When the use of a U.S. carrier service would extend travel time (including delay at origin) by 24 hours or more.

• When a U.S. carrier does not offer nonstop or direct service between origin and destination.

NOTE: When applying an exception to the Fly America Act, documentation

supporting the exception should be retained at the time of booking and attached with

the travel reimbursement. Business office personnel should refer to the Fly America

Act Checklist and Waiver Form 3301 FR.06 to determine if an exception qualifies for

the waiver. A copy of the documented exception must be kept in the grant file.

NOTE: When applying an exception to the Fly America Act, documentation

supporting the exception should be retained at the time of booking and attached with

the travel reimbursement. Business office personnel should refer to the Fly America

Act Checklist and Waiver Form 3301 FR.06 to determine if an exception qualifies for

the waiver. A copy of the documented exception must be kept in the grant file.

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Exceptions to the Fly America Act (Continued)

Travel on Federal Awards

A U.S. carrier must be used on every portion of the route where it provides service unless, when compared to using a foreign air carrier, such use would:

• Increase the number of aircraft changes outside the United States by two or more

• Extend travel time by at least six hours or more

• Require a connecting time of four hours or more at an overseas interchange point.

What is Open Skies?

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Open Skies –

When an agreement is in place between the United States (U.S.) government and the government of foreign country. Open Skies agreement(s) allow the use of a foreign carrier when that airline is a member state carrier, and transportation is between the U.S. and any point in the member state or between two points outside the U.S.

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Exceptions to the Fly America Act (Continued)

Travel on Federal Awards

• Allows the use of non - U.S. air carriers for the following Member States when:

o Utilizing a European Union (EU) carrier

o Flying to Australia*

o Flying to Japan*

o Flying to Switzerland*

o Flying between two points outside the U.S.

• Does not apply to travel supported with Department of Defense (DOD) funds

* Restrictions Apply (see GSA City Pair Web Site)

(http://apps.fas.gsa.gov/citypairs/search/index.cfm?ft)

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Travel on Federal Awards

Open Skies

Austria – Austrian Airlines

Belgium – Brussels Airlines

Bulgaria – Bulgarian Airlines

Cyprus – Cyprus Airlines

Czech Republic – Czech Airlines

Denmark – Scandinavian Airlines System

Estonia – Estonian Air

Finland - Finnair

France – Air France

Germany – Air Berlin, Lutfhansa

Greece – Olympic Air

Hungary – Malev Hungarian Airlines

Iceland* - Icelandair

Ireland – Air Lingus

Italy – Alitalia

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Lativa – airBaltic

Lithuania – None under Open Skies

Luxembourg - Luxair

Malta – Air Malta

Netherlands – KLM Royal Dutch Airlines

Norway* - Scandinavian Airlines System

Poland – LOT Polish Airlines

Portugal – TAP Air Portugal

Romania - TAROM

Slovakia – None under Open Skies

Slovenia – None under Open Skies

Spain – Air Europa, Iberia, Spanair

Sweden - Scandinavian Airlines System

United Kingdom - bmi, British Airways, Virgin Atlantic

* Iceland and Norway are not members of the EU but are included in the EU Open

Skies agreement.

Travel on Federal Awards

European Union (EU) Carriers

Open Skies Member States

Australia

Qantas

Virgin Australia

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Travel on Federal Awards

Open Skies Member States

Switzerland

Swiss Air

Japan

Nippon Airways

Japan Airlines

(http://apps.fas.gsa.gov/citypairs/search/index.cfm?ft)

• OPEN SKIES RESTRICTION: If a City Pair contract is in place you are not allowed to travel on that country’s flag carrier.

• U.S. General Services Administration (GSA) City Pair Program o Defined as negotiated discount international fares available to U.S

government employees (the restriction applies even though the program is not available to grantees).

• Restricted Open Skies Countries

City Pair Verification Required

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Travel on Federal Awards

Fly America and Open Skies Matrix

Intl = International

GSA City Pair Search Tool

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• Identifies whether a city-pair fare is in effect

o GSA Website

http://apps.fss.gsa.gov/citypairs/search/

o Orbitz for Business Website https://www.orbitzforbusiness.net/Secure/OFBSignIn

• YALE TRAVEL WEB SITE AND TRAVEL POLICY

• YALE ONLINE EXPENSE MANAGEMENT SYSTEM

• INTERNATIONAL VISA SERVICES; log in with code 40634

• Yale Community Carbon Fund

• GSA CITY PAIR SEARCH TOOL

• VIDEO: Quick tutorial on rail booking

GSA City Pair Fare Search Tool

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Link provided

within Orbitz

GSA Search Tool

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Click on Enter Site

GSA Search Screen

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Choose a departure and arrival city

GSA Search

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Select Search

GSA Results with City-Pair Fare

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Search results indicate a City-Pair contract is in effect

GSA Results with City-Pair Fare

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Clicking on origin airport provides carrier and fare

information

(YCA = unrestricted coach fare)

GSA Search

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GSA Results with No City-Pair Fare

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Booking Airline Reservations

Orbitz For Business

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• Orbitz asks questions specific to Open Skies that guides the traveler through the booking process.

o Travelers need to be aware but do not need to know all the specific details related to Open Skies.

• When questions are answered correctly, travelers do not have worry about selecting an air carrier that is not in compliance with Federal regulations.

o OFB will determine appropriate air carriers based on your trip’s cities of origin and destination

o Open skies air carriers have been uploaded into OFB

o OFB will inform you if a city-pair check is required

How Can Orbitz for Business (OFB) Help You with Fly America and Open Skies?

Booking Reservations

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•Log onto Orbitz for Business https://www.orbitzforbusiness.net/Secure/OFBSignIn

•Insert city names and dates of Travel

Traveling to foreign country with the exception of Australia, Japan, or Switzerland.

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Answer “A” (not government funded) will

return all carriers.

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Answer “B” (funded by DOD) will return US carriers only

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Answer “C” (government funded, but not

by DOD) will return US and EU carriers.

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These are the questions that will appear if you choose Australia, Japan or Switzerland as an origin or destination

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Answer “A” (not a federally funded trip) will return all carriers.

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Answer “B” (trip is funded by DOD) will return US carriers only.

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Answer “C” (federally funded but not by DOD, and have not checked for GSA city pair contracts) will return you to the search page, prompting you to check city pairs.

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Attach a copy of the results screen to the expense report.

It is not relevant whether you are eligible to use the GSA contract price. If a city pair contract is in

place you are not allowed to travel on that country’s flag carrier.

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Answer “D” (federally funded, but not by DOD and a city pair contract is in effect) will return US and

European Union carriers. Will exclude country's flag carriers.

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Answer “E” (federally funded, but not by DOD and a city pair contract is not in effect) will return US, European Union carriers, and will now include

country’s flag carriers.

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Questions?

Fly America Act and Open Skies

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