GSA Awards Contracts for City-Pairs at 68% DiscountEstimated Annual Savings is $2.5 Billion

GSA #9503

July 29, 1998
Contact: Bill Bearden (202) 501-1231
or Sue Gaumer (703) 305-7314

WASHINGTON, DC - The U.S. General Services Administration (GSA) has awarded contracts to 14 airlines to provide discount air fares to government employees on official travel to 4,895 domestic and 587 international city-pair markets. The awards are effective October 1, 1998, through September 30, 1999.

The 5,482 city-pairs will generate an estimated annual savings of $2.5 billion to the government. The weighted average discount from unrestricted fares offered to the general public is 68%.

In the evaluation criteria this year, considerable weight again was given to the fact that customers had indicated a strong preference for nonstop service. Nonstop service was awarded in 1,571 markets - 28 more markets with nonstop service than were awarded last year.

Under the new contract, GSA's customers will continue to enjoy "best-in-class" service and price. Even as private industry increasingly requires its travelers to purchase tickets at least 7 days in advance, stay over Saturday nights, and take circuitous routings, the government's contract fares continue to be unrestricted. These contracts are not subject to capacity controls, advance purchase requirements and minimum or maximum stay requirements, or travel time limits or penalties.

Under the special contract rates, a one-way ticket from Chicago O'Hare to Washington will cost $53; from Dallas Fort Worth to Washington, $177; and from New York's La Guardia to Washington, $33. Discounts are generally more in larger markets.

Awards were made to the following airlines:

Carrier City Pairs Estimated $ Value
Delta Airlines 1459 $ 267,855,552
United Airlines 776 $ 212,711,928
US Airways 799 $ 208,260,054
American Airlines 703 $ 151,788,924
Northwest Airlines 489 $ 86,348,086
TransWorld Airlines 282 $ 72,696,955
Continental Airlines 356 $ 65,810,665
Southwest Airlines 434 $ 55,732,764
Alaska Airlines 105 $ 27,700,452
Midway Airlines 36 $ 4,898,028
America West 14 $ 3,229,392
Midway Express 11 $ 3,229,392
Reno Air 15 $ 3,029,928
America Trans Air 3 $ 400,876

TOTAL 5,482 $1,164,764,368

Each year, the GSA's Federal Supply Service awards contracts for air transportation for travelers on official government travel under the city pair program. The contracts are awarded competitively based on the best overall value to the government. The best value decision is based on considerations of the type, distribution, and number of flights, the average flight time, and the offered price.