Travel and transportation of goods paid for with U.S. Federal funds are required to use a U.S. air carrier service (Fly America Act). According to the Fly America Act, “all air travel and cargo transportation services funded by the federal government are required to use a ‘U.S. flag’ air carrier service.” This requirement extends to Federal government employees and their dependents; consultants, contractors, and grantees; and other travelers whose travel is paid for using Federal funds. A complete list of U.S. flag air carriers can be found on the U.S. Department of Transportation’s website.

There are some circumstances in which an exception to the Fly America Act can be made, such as when a U.S. air carrier is not available or using a U.S. air carrier would extend travel time by 24 hours or more, create multiple aircraft changes, or cause a layover great than 4 hours at an overseas location. There may also be exceptions provided by Open Skies Agreements between the U.S. and foreign governments. Currently, the U.S. has Open Skies Agreements in effect with the European Union (the EU currently includes 28 countries), Australia, Switzerland, and Japan. Effective January 1, 2021, the United Kingdom (UK) is no longer part of the EU, therefore the Open Skies Agreement with EU countries no longer applies to the UK.

Bottom Line

If travel does not comply with the Fly America Act, the government will not reimburse the cost of the airfare (aka, we cannot charge the Federal award). Cost and convenience do not create exceptions to the Fly America Act, nor can travelers cross the U.S. border to use a foreign airline to avoid being subject to the Fly America Act.

When booking international travel, be certain to let the state-approved travel agency know airfare is being reimbursed with federal funds. For CSU guidance on airfare purchases, visit Travel Services on the Business and Financial Services website.

Information sourced from U.S. General Services Administration – https://www.gsa.gov/policy-regulations/policy/travel-management-policy/fly-america-act