[Plsfaculty] FW: open skies agreements vs. fly america act

Fri Nov 13 14:43:47 MST 2009

  _____  

From: Discussion of Research Administrators' Issues
[mailto:RAMTALK at listserv.arizona.edu] On Behalf Of Jing Liu
Sent: Friday, November 13, 2009 2:37 PM
To: RAMTALK at listserv.arizona.edu
Subject: open skies agreements vs. fly america act

Dear all:

A number of you have asked questions in regards to how to apply the "Open
Skies" Agreements when purchasing airline tickets from foreign carriers.

At this point, only National Science Foundation (NSF) has adopted the "Open
Skies" Agreements for their grants.  The "Open Skies" Agreements do not
apply to NSF cooperative agreements and fellowship awards.  Other Federal
agencies have not updated their grants policies to incorporate the "Open
Skies" Agreements.  

Please be aware that even for NSF grants, there are certain criteria to be
met before a ticket from a foreign carrier can be purchased.  See below for
an excerpt from the NSF's Research Terms & Conditions - Agency Specific
Requirements:

"d. Use of Foreign-Flag Air Carriers

There are limited circumstances under which use of a foreign-flag air
carrier is permissible. These circumstances are outlined below:

1. Airline "Open Skies" Agreements: A foreign flag air carrier may be used
if the

transportation is provided under an air transportation agreement between the
United

States and a foreign government, which the Department of Transportation has

determined meets the requirements of the Fly America Act. For example, in
2008, the

U.S. entered into an "Open Skies" Agreement with the European Union. This

Agreement gives European Community airlines (airlines of Member States) the
right to

transport passengers and cargo on flights funded by the U.S. government,
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. In accordance with the

Agreement, however, a U.S.-flag air carrier must be used if: (a)
transportation is

between points for which there is a city-pair contract fare in effect for
air passenger

transportation services; or (b) transportation is obtained or funded by the
Secretary of

Defense or the Secretary of a Military Department. The conditions for use of
a Member

State airline apply to non-Federal employees as well (e.g., grantees). So,
even though

grantees are ineligible for city-pair contract fares, they must still use a
U.S.-flag air

carrier if a city-pair contract fare exists. For information on other "open
skies"

agreements in which the United States has entered, please refer to GSA's
website:

http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&conten
tId=24833&noc=T

2. Involuntary Rerouting: Travel on a foreign-flag carrier is permitted if a
U.S.-flag

air carrier involuntarily reroutes the traveler via a foreign-flag air
carrier, notwithstanding

the availability of alternative U.S.-flag air carrier service.

3. Travel To and From the U.S.

Use of a foreign-flag air carrier is permissible if the airport abroad is:

(a) the traveler's origin or destination airport, and use of U.S.-flag air
carrier service

would extend the time in a travel status by at least 24 hours more than
travel by a

foreign-flag air carrier; or

(b) an interchange point, and use of U.S.-flag air carrier service would
increase the

number of aircraft changes the traveler must make outside of the U.S. by two
or more,

would require the traveler to wait four hours or more to make connections at
that point,

or would extend the time in a travel status by at least six hours more than
travel by a

foreign-flag air carrier.

4. Travel Between Points Outside the U.S.

Use of a foreign-flag air carrier is permissible if:

(a) travel by a foreign-flag air carrier would eliminate two or more
aircraft changes en

route;

(b) travel by a U.S.-flag air carrier would require a connecting time of
four hours or

more at an overseas interchange point; or

(c) the travel is not part of the trip to or from the U.S., and use of a
U.S.-flag air

carrier would extend the time in a travel status by at least six hours more
than travel by a

foreign-flag air carrier.

5. Short Distance Travel. For all short distance travel, regardless of
origin and

destination, use of a foreign-flag air carrier is permissible if the elapsed
travel time on a

scheduled flight from origin to destination airport by a foreign-flag air
carrier is three

hours or less and service by a U.S.-flag air carrier would double the travel
time."

Here is an excerpt from the January 09's Federal grants News to help to
determine the "Open Skies" allowability and how to search for a city pair
agreement.

"The "Open Skies" allowability and a city pair agreement work as follows: If
an investigator is flying from Minneapolis to Paris, check the General
Services Administration's Web site of city pairs
(http://apps.fas.gsa.gov/citypairs/search/). The web page does not list a
city pair agreement from Minneapolis to Paris; consequently, any carrier
from the European Union could be used.  However, if there were a city pair
agreement designated for Minneapolis to Paris, then the U.S. Carrier must be
used.  One advantage of the city pair program is cheaper fares; however,
these lower fares are not available to nongovernment employees."

The full text of the NSF Research Terms & Conditions - Agency Specific
Requirements can be viewed at:
http://www.nsf.gov/pubs/policydocs/rtc/nsf_109.pdf

You can also view the SPS Financial Compliance News, Issue No. 30 (1/9/09),
item B for information about how to apply the "Open Skies" Agreements.

http://sps.arizona.edu/financialcompliance/training/news/Financial%20Complia
nce%20News_30_010909.doc

Jing Liu, CPA
Manager, Sponsored Projects Quality Assurance
Sponsored Projects Services
The University of Arizona
PO Box 3308
Tucson, AZ 85722-3308
(520) 626-6442
Fax: (520) 626-4137

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