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Fly American Act Changes for Federally Sponsored Grant & Contract Travel

The General Services Administration has issued a final rule pertaining to the use of U.S. flag carriers under the Fly American Act.  Effective Jan. 1, 1999, the connecting time has been reduced from six hours or more to four hours or more at an overseas interchange point for purposes of determining whether U.S. flag carrier service is unavailable.  However, a recent GSA analysis of airline schedule data showed that the average layover or connecting time is 2 1/2 hours.

The final rule also commented about code sharing agreements, which is an agreement among two or more airlines, e.g. a foreign and U.S. airline, in which they cooperate in marketing and sales, scheduling and sometimes maintenance, training, purchasing and other areas.  The final rule states that the ticket (or documentation for an electronic ticket) must identify the U.S. airline's designator code and flight number.  This has been changed from prior focus on the U. S. airline's ticket stock.

Questions should be directed to:

  • University Grants & Contracts at 2-2460, 155 Whitney Avenue, Room 214
    or
    Medical School Grants & Contracts, 5-4689, 47 College Street, Suite 203

Source:  General Services Administration, 41 CFR Parts 301-3 and 301-10, Federal Travel Regulation; Use of Commercial Transportation, Fly American Act, OGP, GSA, Action:  Final rule.