Airline Open Skies Agreements

Generally, federal travelers are required by 49 U.S.C. 40118, commonly referred to as the "Fly America Act," to use U.S. flag air carrier service for all air travel funded by the U.S. Government. However, an exception to this requirement is transportation provided under a bilateral or multilateral air transportation agreement to which the United States Government and the government of a foreign country are parties, and which the Department of Transportation has determined meets the requirements of the Fly America Act.

For example, the Open Skies Agreement between the United States (US) Government and the European Union (EU) gives Community airlines (airlines of Member States) the right to transport passengers and cargo on scheduled and charter flights funded by the US Government, including transportation provided to or for a foreign country or international or other organization without reimbursement, when the transportation is between a point in the United States and any point in a Member State or between any two points outside the United States except when:

(1) Transportation is between points for which there is a City-Pair contract fare in effect for air passenger transportation services, or

(2) Transportation is obtained or funded by the Secretary of Defense or the Secretary of a military department.

In addition to the US-EU Open Skies agreement, there are two other new air transport agreements that allow Federal employees to use foreign airlines under certain circumstances.

A new air transport agreement between the United States and Australia provides for the following:

Effective October 1, 2008, Australian airlines shall have the right to transport passengers and cargo on scheduled and charter flights for which a U .S. Government civilian department, agency, or instrumentality

(1) Obtains the transportation for itself or in carrying out an arrangement under which payment is made by the Government or payment is made from amounts provided for the use of the Government, or,

(2) Provides the transportation to or for a foreign country or international or other organization without reimbursement, and that transportation is

• Between any point in the United States and any point in Australia, except - with respect to passengers only - between points for which there is a city-pair contract fare in effect, or
• Between any two points outside the United States . This paragraph shall not apply to transportation obtained or funded by the Secretary of Defense or the Secretary of a military department.

Finally, a new air transport agreement between the United States and Switzerland provides for the following:

Effective October 1, 2008, airlines of Switzerland shall have the right to transport passengers and cargo on scheduled and charter flights for which a U .S. Government civilian department, agency, or instrumentality:

1) Obtains the transportation for itself or in carrying out an arrangement under which payment is made by the Government or payment is made from amounts provided for the use of the Government, or

2) Provides the transportation to or for a foreign country or international or other organization without reimbursement, and that transportation is :

• Between any point in the United States and any point in Switzerland, except - with respect to passengers only - between points for which there is a city-pair contract fare in effect, or
• Between any two points outside the United States . This Annex shall not apply to transportation obtained or funded by the Secretary of Defense or the Secretary of a military department.

Information for Non-Federal Employees Traveling on Government Funds:

The fact that contractors and grantees are not eligible to use GSA's City-Pair Program is irrelevant under the open skies or air transportation agreements listed here. If transportation is between points for which there is a city-pair contract fare in effect, contractors and grantees traveling on US Government funds are still required to use U.S. flag air carrier service unless one of the other exceptions to the use of such service, as set out in the Federal Travel Regulation, applies. These other exceptions can be found in Chapters §301-10.136, -10.137, and -10.138 of the Federal Travel Regulation.

As other similar air transport or open skies agreements are signed, GSA will post relevant information on this web site. In the meantime, please call Rick Miller at 202-501-3822 or send an email to rodney.miller@gsa.gov if you have any questions or comments.