1. The Fly America Act Regulating the use of Foreign Air Carriers on Federally Funded Awards Link for complete set of slides http://www.osp.cornell.edu /

2. AGENDA 1.What is foreign travel? 2.What is the Fly America Act? 3.What are the exceptions to the Fly America Act? 4.What is Code Sharing? 5.What is the Fly America Act exemption certification? 6.How do we deal with disallowed travel? 7.Quick reference 8.Related links 9.Questions

3. Definition of Foreign Travel Travel other than within the 50 states, the District of Columbia, and the territories and possessions of the United States. Marshall Islands Guam Federated States of Micronesia Northern Mariana Islands American Samoa Palau Puerto Rico Virgin Islands Some agencies will consider Canada and Mexico as domestic. Check your sponsor’s regulations.

4. What is the purpose of the Fly America Act ? First enacted in 1974, and subsequently amended in 1979, 1996 and 1998, the “Fly America Act” originally intended to encourage travel to and from the U.S. on U.S. carriers. It ultimately requires that any foreign air travel funded with federal dollars be performed on U.S. flag air carriers when service provided by a U.S. carrier is available unless “acceptable reasons” determine the unavailability of a U.S. air carrier.

5. What constitutes availability ? U.S. air carrier service is considered available even if : comparable, or different, air travel service can be provided at less cost by a foreign air carrier; the foreign carrier is preferred, or more convenient; the foreign carrier can be paid in excess foreign currency.

6. CFR Title 41: Public Contracts and Property Management PART 301–10—TRANSPORTATION EXPENSES Subpart B—Common Carrier Transportation Use of United States Flag Air Carriers § 301-10.136 What exceptions to the Fly America Act requirements apply when I travel between the United States and another country? The exceptions are: (a) If a U.S. flag air carrier offers nonstop or direct service (no aircraft change) from your origin to your destination, you must use the U.S. flag air carrier service unless such use would extend your travel time, including delay at origin, by 24 hours or more.

7. § 301-10.136 (b) If a U.S. flag air carrier does not offer nonstop or direct service (no aircraft change) between your origin and your destination, you must use a U.S. flag air carrier 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 you must make outside of the U.S. by 2 or more; or Extend your travel time by at least 6 hours or more; or Require a connecting time of 4 hours or more at an overseas interchange point.

8. § 301-10.137 What exceptions to the Fly America Act requirements apply when I travel solely outside the United States, and a U.S. flag air carrier provides service between my origin and my destination? You must always use a U.S. flag carrier for such travel, unless, when compared to using a foreign air carrier, such use would: (a)Increase the number of aircraft changes you must make en route by 2 or more; or (b) Extend your travel time by 6 hours or more; or (c) Require a connecting time of 4 hours or more at an overseas interchange point.

9. § 301-10.138 In what circumstances is foreign air carrier service deemed a matter of necessity? (a)Foreign air carrier service is deemed a necessity when service by a U.S. flag air carrier is available, but (1) Cannot provide the air transportation needed; or (2) Will not accomplish the agency's mission.

10. § 301-10.138 (b) Necessity includes, but is not limited to, the following circumstances: ( 1) When the agency determines that use of a foreign air carrier is necessary for medical reasons, including use of foreign air carrier service to reduce the number of connections and possible delays in the transportation of persons in need of medical treatment; or Please note that the CFR does not require sponsor prior approval of this exception. It is Cornell’s position that unless it is an emergency Cornell will require sponsor prior approval.

11. § 301-10.138 2) When use of a foreign air carrier is required to avoid an unreasonable risk to your safety and is approved by your agency (e.g., terrorist threats). Written approval of the use of foreign air carrier service based on an unreasonable risk to your safety must be approved by your agency on a case by case basis. An agency determination and approval of use of a foreign air carrier based on a threat against a U.S. flag air carrier must be supported by a travel advisory notice issued by the Federal Aviation Administration and the Department of State. An agency determination and approval of use of a foreign air carrier based on a threat against Government employees or other travelers must be supported by evidence of the threat(s) that form the basis of the determination and approval; or

12. § 301-10.138 (3) When you cannot purchase a ticket in your authorized class of service on a U.S. flag air carrier, and a seat is available in your authorized class of service on a foreign air carrier.

13. Short Distance Travel If use of a foreign carrier is 3 hours or less and the use of a U.S. carrier would double the en route travel time a foreign carrier may be used

14. § 301-10.134 What is U.S. flag air carrier service? U.S. flag air carrier service is service provided on an air carrier which holds a certificate under 49 U.S.C. 41102 and which service is authorized either by the carrier's certificate or by exemption or regulation. U.S. flag air carrier service also includes service provided under a code share agreement with a foreign air carrier in accordance with Title 14, Code of Federal Regulations when the ticket, or documentation for an electronic ticket, identifies the U.S. flag air carrier's designator code and flight number.

15. The Fly America Act CODE SHARE The code designation is underlined in red. In this case a traveler booked the flight through Air France. Air France put the traveler on a U.S. Air flight through a code share program. The U.S. Air legs of the trip would be reimbursable but the legs on Air France would require The Fly America Act certification.

16. The Fly America Act CODE SHARE This is an example where a traveler booked the flight through a U.S. flag air carrier and the carrier placed the traveler on Air France through its code share program. This entire flight would be covered by federal funding.

19. § 301-10.141 Must I provide any special Documents if I use a foreign air carrier? Yes, you must provide a certification, as Required by your agency. Your agency cannot pay for foreign air carrier fare if you do not provide the required certification. § 301-10.142 What must the Certification include? a.Your name b.The dates that you traveled c.The origin and the destination of your travel d.A detailed itinerary of your travel, name of the air carrier and flight number for each leg of the trip e.A statement explaining why you met one of the exceptions or a copy of your agency's written approval that foreign air carrier service was deemed a matter of necessity in accordance with §301–10.138.

21. The Fly America Act In order to accept any of the permissible reasons to use a foreign flag air carrier a signed certification must be received, containing the following: Traveler’s name and dates of travel; The origin and destination of the trip; Detailed itinerary of the trip, including the name of the air carrier and flight number for each leg of the trip; Statement explaining why the travel performed met one of the exceptions to the requirements of the Fly America Act.

23. DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND I WOULD HAVE HAD TO WAIT 24 HOURS TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN 8 HOURS FOR A US FLIGHT X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND I WOULD HAVE HAD TO WAIT 24 HOURS TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN 8 HOURS FOR A US FLIGHT X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND AND TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN HOURS NY, NY ROME ITALY X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND AND TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN HOURS NY, NY ROME ITALY X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND AND TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN HOURS NY, NY ROME ITALY X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND AND TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN HOURS NY, NY ROME ITALY X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND AND TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN HOURS NY, NY ROME ITALY X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005 816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND AND TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN 7 HOURS NY, NY ROME ITALY X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005 816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND AND TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN 7 HOURS NY, NY ROME ITALY X X DR. JOE SCHMO TRAVELER NOVEMBER 20,2005 TO NOVEMBER 29, 2005 816 11/30/05 IBERIA AIR3609 ROME, ITALYMADRID, SPAIN IBERIA AIR 6251 MARDID, SPAIN NEW YORK, NEW YORK RETURN TRIP ON IBERIA AIR TAKEN DUE TO NO US FLIGHT AVAILABLE AT TIME OF DEPARTURE AND AND TO CATCH A US FLIGHT. IN MADRID THE LAYOVER WOULD HAVE BEEN 7 HOURS NY, NY ROME ITALY X X

24. § 301-10.143 What is my liability if I improperly use a foreign air carrier? You will not be reimbursed for any transportation cost for which you improperly use foreign air carrier service. If you are authorized by your agency to use U.S. flag air carrier service for your entire trip, and you improperly use a foreign air carrier for any part of or the entire trip (i.e., when not permitted under this regulation), your transportation cost on the foreign air carrier will not be payable by your agency. If your agency authorizes you to use U.S. flag air carrier service for part of your trip and foreign air carrier service for another part of your trip, and you improperly use a foreign air carrier (i.e., when neither authorized to do so nor otherwise permitted under this regulation), your agency will pay the transportation cost on the foreign air carrier for only the portion(s) of the trip for which you were authorized to use foreign air carrier service. The agency must establish internal procedures for denying reimbursement to travelers when use of a foreign air carrier was neither authorized nor otherwise permitted under this regulation.

25. COST OF FLIGHT = COST PER AIR MILE TOTAL AIR MILES TOTAL ALLOWABLE MILES * COST PER AIR MILE = TOTAL ALLOWABLE REIMBURSEMENT CALCULATION OF ALLOWABLE COST WHEN ONE OR MORE LEGS DO NOT MEET THE FLY AMERICA ACT EXCEPTIONS

26. 2050.28 =0.3058 4280+836+1588 COST / AIR MILE 5116 * 0.3058= TOTAL ALLOWABLE MILES 1564.62 TOTAL REIMBURSABLE AMOUNT For the sake of this example the Madrid to JFK leg has been disallowed.

27. FLY AMERICA EXCEPTION QUICK REFERENCE TRAVEL BETWEEN US & FOREIGN COUNTRY Non-stop or direct service on US carrier would extend travel time by more than 24hours Non-direct service on US carrier would increase aircraft changes by 2 or more extend travel time by 6 hours or more require lay over of 4 hours or more at an overseas interchange point TRAVEL BETWEEN 2 POINTS OUTSIDE THE US Use of a US carrier between 2 points outside the US would increase aircraft changes by 2 or more extend travel time by 6 hours or more require lay over of 4 hours or more GENERAL RULES Use of a foreign air carrier is necessary when US carrier cannot provide air transportation US carrier will not accomplish agencies mission for medical reasons it is necessary to reduce the number of changes and possible delays. the FAA has issued a travel advisory for the destination. The sponsor must approve this exception a coach class seat is not available on a US carrier Short distance travel on foreign carrier is allowed when time en route is less than 3 hours and use of a US carrier would double the en route travel time

28. Related Links It’s The Law Office of the Assistant General Counsel for Finance and Litigation Federal Assistance Law Division Vol. 14 Feb 13, 2002 “Fly America - More Than Just A Name” by Mike Cannon http://www.ogc.doc.gov/ogc/fl/fald/itl/itlv14.pdf ____ 41 CFR Parts 301–3 and 301–10 http://osr.unc.edu/documents/federal_travel.pdf ____ FAR Subpart 47.4—Air Transportation by U.S.-Flag Carriers http://www.arnet.gov/far/current/html/Subpart%2047_4.html#wp1082011 ___ Current Travel Warnings http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html ____ US Air Carrier Codes http://www.airlinedata.com/uscar.htm#MAJORS _____ Foreign Flag Carrier Approval Exemption Certification Form http://www.payments.cornell.edu/cm_images/uploads/forms/cu_sps_foreig ncarrier.pdf

29. QUESTIONS? ROUND TABLE SURVEY http://www.osp.cornell.edu/Survey/RoundTableDiscussion.cfm