1. Fly America Act and Open Skies Agreement
Charging Foreign Air Carrier Travel to Federal Awards
Presented by:
Office of Sponsored Projects
Revised 08/20/18
PRN: 11/9/2018 9:46 AM

2. Topics Covered Travel Reminders Fly America Act
Fly America Act Exceptions
Open Skies Agreements
Complying with the Fly America Act and Open Skies Agreements
GSA City Pair Search Tool
Egencia: Online Booking and Reservations
Case Studies and Discussion
Question and Answers

3. Travel Reminders
Procedure 3301 PR.01 Travel Arrangements for University Business requires travelers to use the lowest available economy class airfare, consistent with business requirements.
The charging of business or first-class air travel is not permitted to a federally funded award 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 Wi-Fi during an airline flight, pillows and blankets and preferred seating in coach cannot be charged to federally funded awards. These costs must be supported with GA funds as noted in Policy 3301 section : Travel on University Business: Air Travel.

4. Fly America Act

5. Fly America Act
Travelers are required by 49 U.S.C , commonly referred to as the "Fly America Act," to use United States flag air carrier service for all air travel and cargo transportation services funded by the United States Government.
Fly America Act – requires the use of a U.S. flag air carrier even if:
A foreign air carrier service is less expensive, or
A foreign air service is preferred by the traveler, or
A foreign air service is more convenient.

6. Fly America Act Exceptions

7. Fly America Act Exceptions
The Fly America Act…
Requires the use of a U.S. flag air carrier for all travel supported by federal funds unless:
A U.S. flag carrier is not available
The use of a nonstop or direct U.S. flag air carrier service from origin to destination would extend travel time (including delay at origin) by 24 hours or more
A U.S. flag air carrier does not offer nonstop or direct service between origin and destination, however…

8. Fly America Act Exceptions (continued)
The Fly America Act…
Requires that a U.S. flag air 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.

9. Fly America Act Exceptions (continued)
The Fly America Act…
Considers a U.S. flag air carrier service as unavailable when the elapsed travel time on a scheduled flight from origin to destination by a foreign air carrier is:
3 hours or less
AND
The use of a U.S. flag air carrier doubles the time enroute.
Code-sharing agreements with foreign air carriers, whereby American flag air carriers purchase or have the right to sell a block of tickets on a foreign carrier, comply with the Fly America Act.
The ticket, or documentation for an electronic ticket, must identify the U.S. carrier's designator code and flight number in order for the flight to be charged to a federal award.

10. Open Skies Agreement

11. * City Pair Restrictions Apply
Open Skies Agreements
Exceptions to the Fly America Act
Open Skies Agreements
May allow the use of non-U.S. flag air carriers
Four (4) Agreements to-date:
BUT travelers should be familiar with:
U.S. General Services Administration (GSA) City-Pair Program
City-Pair contract fare
GSA negotiated discount fares available to U.S. Government employees only but can restrict use of Open Skies flights
Restricted Open Skies Agreements
prohibit the use of flag carriers from restricted countries if flying between the U.S. and the restricted country if a city-pair contract fare is available even though the traveler is not eligible for the city-pair fare.
GSA City Pairs Program Fare Finder
Australia*
European Union
Japan*
Switzerland*
* City Pair Restrictions Apply
Note: Open Skies Agreements do not apply to travel supported with the Department of Defense (DOD) funds.

12. Open Skies Member States
Open Skies Agreements
Open Skies Member States
European Union (EU) Carriers Not All-Inclusive
Austria – Austrian Airlines
Belgium – Brussels Airlines
Bulgaria – Bulgaria Air
Cyprus – Cyprus Airlines
Czech Republic – Czech Airlines
Denmark – Scandinavian Airline
Estonia – None
Finland – Finnair
France – Air France
Germany – Lutfhansa
Greece – Aegean Airline
Hungary – Wizz Air
Iceland* – Icelandair, Wow Air
Ireland – Air Lingus, Ryanair
Italy – Alitalia
Latvia – airBaltic
Lithuania – None
Luxembourg - Luxair
Malta – Air Malta
Netherlands – KLM
Norway* – Norwegian Air
Poland – LOT Polish Airlines
Portugal – TAP Portugal
Romania – TAROM
Slovakia – None
Slovenia – None
Spain – Air Europa, Iberia
Sweden – Scandinavian Airlines
United Kingdom – British Airways, Virgin Atlantic
(United Kingdom is still a member of the EU)
* Iceland and Norway are not members of the EU but are included in the EU Open Skies Agreements

13. Open Skies Agreements Restricted Open Skies Agreements Countries
City Pair Verification Required
Australia
Qantas
Virgin Australia
Switzerland
Swiss Air
Japan
All Nippon Airways
Japan Airlines
GSA City Pair Program Search Tool

14. Complying with the Fly America Act and Open Skies Agreements

15. Fly America Act & Open Skies Agreements Matrix

16. Complying with the Fly America Act
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:
What the funding source is for the travel
Review Policy 3301 Travel on University Business, section Air Travel whether or not the travel is in accordance with the Fly America Act
If you feel an exception is applicable, consult your business office or OSP Accountant
Travelers are encouraged to use the University’s preferred travel vendor Egencia
NOTE: When an exception to the Fly America Act exists, documentation supporting the exception should be retained at the time of booking and attached electronically with the travel reimbursement or retained in the department’s award file.
Business office personnel should refer to the Fly America Act Checklist and Waiver Form FR.06 to determine if an exception qualifies for waiver.

17. Flying the Friendly Skies
Origin and Destination
Charged to:
Airline
Allowable?
Mexico City to New York to Madrid Spain
NIH award
Iberia Airlines
St. Petersburg Russia to Moscow
DOD award
S7 Airlines (Russian)
New York (JFK) to Sydney Australia
Dept. of State
Qantas
Sydney Australia to Cape Town S. Africa
NSF award
British Airways
Toronto to Washington D.C.
Air Canada
New York to Paris to Geneva
Swiss Air
Yes
Reason: Use of EU Open Skies Airline is acceptable for two points outside US
Yes
Reason: Requires verification that no US flag air carriers are available (None were available) No
Reason: Requires verification of city pair contract (City Pair is Available)
Yes
Reason: Use of EU Open Skies Airline is acceptable for two points outside US No
Reason: U.S. Flag Carriers are available. Canada is not eligible under Open Skies for charging Federal Funds No
Reason: Requires verification of a city pair contract (City Pair is Available)

18. Test Your Knowledge: Case Studies

19. Case Study A
Dr. Wayfaring is traveling to Taiwan to collaborate with researchers at the National Taipei University of Technology and to conduct research related to her NIH award. Since the trip is imminent, she quickly searches for flights on travelocity.com and books a first class, non-stop flight on Eva Airways, a Taiwanese air carrier, from New York – JFK to Taipei.
Q: Is this an allowable charge on the NIH award?
Q: How and where should this charge be made?

20. Case Study A: Analysis
Q: Is this an allowable charge to an NIH R01 award?
A: Purchase of a first class ticket is not allowable on a federal award. In addition, federal awards are required to comply with the Fly America Act. Therefore, since the ticket was purchased on Eva Airways and does not comply with the Fly America Act the ticket cannot be charged to a federal award.
Q: Where can this expense be charged and how should it be charged?
A: The cost of the ticket should be charged to a non-sponsored award. The difference between the cost of business class and economy class must be determined and this difference charged to spend category SC758: Travel- Unallowable.

21. Case Study B
Dr. Wayfaring, now somewhat more aware of the federal requirements of her award, is traveling to Osaka Japan to attend a conference, where she is delivering a paper on another research study funded by a NSF award. She purchases a New York, JFK to Osaka, Japan first class airline ticket on Japan Airlines.
Q. Is this an allowable charge to the NSF award?

22. Case Study B: Analysis
Q: Is this an allowable charge to the NSF award?
A: JFK to Osaka, Japan falls under the U.S. and Japan Open Skies Agreement.
In order to charge the Japan Airlines ticket to the federal award, a city pair contract fare cannot exist between the origin and destination city. In this situation a city pair contract fare does not exist and therefore, the award can be charged. However...
The coach fare equivalent is only allowable to be charged to the NSF award (must be documented at the time of reservation).
The difference between first class and coach must be determined and charged to a non- sponsored award using the spend category SC258 Travel-Unallowable calculation.

23. Case Study B: Analysis
An example of a city pair verification check, which illustrates that no city pairs exists between JFK and Osaka, Japan
Documentation that supports the city pair verification and coach fare ticket portion charged to the award must be electronically submitted with the travel reimbursement or kept as part of the department’s award file.

24. GSA City Pair Search Tool

25. GSA City Pair Fare Search Tool
The City Pair Program offers government employees fares lower than comparable commercial fares. Flights on airlines from restricted Open Skies countries flying to a destination within that country, and have a City Pair Fair, cannot be booked and charged to Federal awards.
The City Pair search tool assists in identifying these fares.
The search tool identifies whether a city-pair fare is in effect
GSA Website:
Travel Resources
Yale Travel website
Yale Travel: Egencia Online Booking and Reservation Tool
Yale Online Expense Management System
International Visa Services (Login with code 40634)
Yale Community Carbon Fund
GSA City Pair Search Tool
Yale Policy: 3301 Travel on University Business
FAQs for City Pair Program
Removed the following bullet. No one can find the video tutorial and rail booking isn’t
Link provided within Egencia

26. Using the GSA Search Tool
Go to the website:
Enter your departure and arrival cities
Select: Search FY 18
If no city pairs exists, the following message will appear above the Fare Finder tab

27. Egencia: Online Booking and Reservations

28. Egencia: Setup Your Egencia Account
First time users:
Go to:
Select: Login
In the user name box enter your Yale address
Select: Forgot username and/or password and request a new password

29. Egencia Home Page
The Message Center contains Fly America Act Requirements
Favorite Links includes a shortcut to the GSA City Pair Search Tool
Fill in your flight information and select: search flights

30. Egencia: Search for International Flight
The following message appears when an international search is initiated:

31. Test Your Knowledge: Scenarios

32. Open Skies Booking: Scenario #1
When traveling to a foreign country, (with the exception of Australia, Japan or Switzerland), determine if the trip is funded by a federal grant or contract.
No.
Yes, and the award is funded by a Dept. of Defense (DOD) agency.
Yes, and the award is NOT funded by a DOD agency.
The U.S. Government has entered into “Open Skies” agreements with some countries. These agreements provide an exception to the “Fly America Act.”
Read University Procedure 3301 PR.01 for specific “Open Skies” agreement information and restrictions.

33. Open Skies Booking: Scenario #1
When traveling to a foreign country, (with the exception of Australia, Japan or Switzerland), determine if the trip is funded by a federal grant or contract.
No. Not government funded: select any carrier.
Yes, and the award is funded by a Dept. of Defense (DOD) agency. Funded by DOD: select U.S. flag air carriers only, unless none are available. City Pair conditions do not apply.
Yes, and the award is NOT funded by a DOD agency. Government funded but not by DOD: select U.S. flag air and EU carriers

34. Open Skies Booking: Scenario #2
When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract.
No.
Yes, and my award is funded by a Dept. of Defense (DOD) agency.
Yes, and my award is NOT funded by a DOD agency.
Yes, and my award is NOT DOD funded AND I have documented that a City-Pair contract IS in effect. (Use the GSA search tool.)
Yes, and my award is NOT DOD funded AND I have documented that a City-Pair contract is NOT in effect. (Use the GSA search tool.)
The U.S. Government has entered into “Open Skies” agreements with some countries. These agreements provide an exception to the “Fly America Act.”
Read University Guide 3301 GD.02 for specific “Open Skies” agreement information and restrictions.

35. Open Skies Booking: Scenario #2
When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract.
No. Select any carrier.
Yes, and the award is funded by a Dept. of Defense (DOD) agency. Select U.S. flag air carriers only.
Yes, and the award is NOT funded by a DOD agency. Check City-Pair.
Yes, and the award is NOT DOD funded. Document that a City-Pair contract IS in effect. (Use the GSA search tool.) Select US and EU carriers, but not country’s flag carriers.
Yes, and the award is NOT DOD funded. Document that a City-Pair contract is NOT in effect. (Use the GSA search tool.) Select US, EU carriers, including country’s flag air carriers.

36. Expense Report: GSA Results Screen
Attach a copy of the GSA results screen to the expense report. Note: This GSA results screen must be attached.
Eligibility to use the GSA contract price is irrelevant. If a city pair contract is in place the traveler is not allowed to travel on that country’s flag air carrier.

37. Class Take Aways
The Fly America Act restricts the use of international flag air carriers charged to federal awards.
Open Skies Agreements are exceptions to the Fly America Act.
All Fly America Act exceptions and Open Skies Agreements exceptions must be documented by completing Form 3301FR.06.
Review the Open Skies booking questions to ensure flights comply with the Fly America Act and Open Skies Agreements.
Business and first class travel generally cannot be charged to federal awards. The exception to this is for doctor approved medical reasons or to avoid unreasonable risk to the traveler.
Additional costs for pillows, blankets, Wi-Fi and preferred seating cannot be charged to a federal award.

38. Websites referenced in this presentation
2 CFR Part 200 (OMB Circular A-81) Form 3301 FR.06 Fly America Act Waiver Form: Travel on a non-U.S. Carrier General Services Administration (GSA) Airline City Pair Program Search Tool General Services Administration (GSA) FAQs Guide 1305 GD.07 Determining Allowability, Reasonableness, and Allocability of Costs for Sponsored Projects Guide 3301 GD.02 Use of U.S. Flag Carriers for Sponsored Foreign Travel

39. Websites referenced in this presentation
OSP: Find the OSP Accountant Assigned to Your Department Policy 3301 Travel on University Business Policy Travel on University Business: Air Travel Procedure 3301 PR.01 Travel Arrangements for University Business Procedure 1305 PR.04 Unallowable Costs Yale Travel Information and Egencia website

40. Questions Email questions to: osp.trainings@yale.edu
You will receive a response within 2 business days.

41. Review Questions and Answers

42. Case Study A
Dr. Wayfaring is traveling to Taiwan to collaborate with researchers at the National Taipei University of Technology and to conduct research related to her NIH award. Since the trip is imminent, she quickly searches for flights on travelocity.com and books a first class, non-stop flight on Eva Airways, a Tiawanese air carrier, from New York – JFK to Taipei.
Q: Is this an allowable charge on the NIH award?
Q: How and where should this charge be made?

43. Case Study A: Analysis
Q: Is this an allowable charge to an NIH R01 award?
A: Purchase of a first class ticket is not allowable on a federal award. In addition, federal awards are required to comply with the Fly America Act. Therefore, since the ticket was purchased on Eva Airways and does not comply with the Fly America Act the ticket cannot be charged to a federal award.
Q: Where can this expense be charged and how should it be charged?
A: The cost of the ticket should be charged to a non-sponsored award. The difference between the cost of business class and economy class must be determined and this difference charged to Ledger Account Travel Expense.

44. Case Study B
Dr. Wayfaring, now somewhat more aware of the federal requirements of her award, is traveling to Osaka Japan to attend a conference, where she is delivering a paper on another research study funded by a NSF award. She purchases a New York, JFK to Osaka, Japan first class airline ticket on Japan Airlines.
Q. Is this an allowable charge to the NSF award?

45. Case Study B: Analysis
Q: Is this an allowable charge to the NSF award?
A: JFK to Osaka, Japan falls under the U.S. and Japan Open Skies Agreement.
In order to charge the Japan Airlines ticket to a federal award, a city pair contract fare cannot exist between the origin and destination city. For this situation a city pair contract fare does not exist and therefore, the award can be charged. However...
The coach fare equivalent is only allowable to be charged to the NSF award (must be documented at the time of reservation).
The difference between first class and coach must be determined and charged to a non- sponsored award using Ledger Account Travel Expense (Travel-Unallowable) calculation.

46. Case Study B: Analysis
An example of a city pair verification check, which illustrates that no city pairs exists between JFK and Osaka, Japan
Documentation that supports the city pair verification and coach fare ticket portion charged to the award must be electronically submitted with the travel reimbursement or kept as part of the department’s award file.

47. Open Skies Booking: Scenario #1
When traveling to a foreign country, (with the exception of Australia, Japan or Switzerland), determine if the trip is funded by a federal grant or contract.
No.
Yes, and the award is funded by a Dept of Defense (DOD) agency.
Yes, and the award is NOT funded by a DOD agency.
The U.S. Government has entered into “Open Skies” agreements with some countries. These agreements provide an exception to the “Fly America Act.”
Read University Procedure 3301 PR.01 for specific “Open Skies” agreement information and restrictions.

48. Open Skies Booking: Scenario #1
When traveling to a foreign country, (with the exception of Australia, Japan or Switzerland), determine if the trip is funded by a federal grant or contract.
No. Not government funded: select any carrier.
Yes, and the award is funded by a Dept of Defense (DOD) agency. Funded by DOD: select U.S. flag air carriers only
Yes, and the award is NOT funded by a DOD agency. Government funded but not by DOD: select U.S. flag air and EU carriers

49. Open Skies Booking: Scenario #2
When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract.
No.
Yes, and my award is funded by a Dept of Defense (DOD) agency.
Yes, and my award is NOT funded by a DOD agency.
Yes, and my award is NOT DOD funded AND I have documented that a City-Pair contract IS in effect. (Use the GSA search tool.)
Yes, and my award is NOT DOD funded AND I have documented that a City-Pair contract is NOT in effect. (Use the GSA search tool.)
The U.S. Government has entered into “Open Skies” agreements with some countries. These agreements provide an exception to the “Fly America Act.”
Read University Guide 3301 GD.02 for specific “Open Skies” agreement information and restrictions.

50. Open Skies Booking: Scenario #2
When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract.
No. Select any carrier.
Yes, and the award is funded by a Dept of Defense (DOD) agency. Select U.S. flag air carriers only.
Yes, and the award is NOT funded by a DOD agency. Check City-Pair.
Yes, and the award is NOT DOD funded. Document that a City-Pair contract IS in effect. (Use the GSA search tool.) Select US and EU carriers, but not country’s flag carriers.
Yes, and the award is NOT DOD funded. Document that a City-Pair contract is NOT in effect. (Use the GSA search tool.) Select US, EU carriers, including country’s flag air carriers.