Fly America Act & Open Skies Agreements - Yale University

Fly America Act & Open Skies Agreements - Yale University

Yale Fly America Act and Open Skies Agreement Charging Foreign Air Carrier Travel to Federal Awards Presented by: Office of Sponsored Projects Revised 09/01/17 PRN: 1/25/20 12:54 PM 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 2 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 travelers 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 3301.1: Travel on University Business: Air Travel. 3 Yale Fly America Act Fly America Act Travelers are required by 49 U.S.C. 40118, 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:

o A foreign air carrier service is less expensive, or o A foreign air service is preferred by the traveler, or o A foreign air service is more convenient. 5 Yale Fly America Act Exceptions 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. 7 Fly America Act Exceptions (contd) 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: o Increase the number of aircraft changes outside the United States by two or more

o Extend travel time by at least six hours or more o Require a connecting time of four hours or more at an overseas interchange point. 8 Fly America Act Exceptions (contd) 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 en-route.

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. 9 Yale Open Skies Agreement 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 Australia* European Union Japan* Switzerland * * City Pair Restrictions Apply U.S. General Services Administration (GSA) City-Pair Program City-Pair contract fare GSA negotiated discount fares available to U.S. Government employees Requires the use of a U.S. flag air carrier when a city-pair contract fare is available even if the traveler is not eligible for the City-Pair fare GSA City Pairs Program Fare Finder

te: Open Skies Agreements do not apply to travel supported with the Department of Defense (DOD) funds. 11 Open Skies Agreements Open Skies Member States European Union (EU) Carriers Not All-Inclusive Austria Austrian Airlines Lativa airBaltic Belgium Brussels Airlines Lithuania None under Open Skies Bulgaria Bulgarian Airlines Luxembourg - Luxair Cyprus Cyprus Airlines Malta Air Malta Czech Republic Czech Airlines

Netherlands KLM Royal Dutch Airlines Denmark Scandinavian Airlines Norway* Scandinavian Airlines System System Poland LOT Polish Airlines Estonia Estonian Air Portugal TAP Air Portugal Finland Finnair Romania TAROM France Air France Slovakia None under Open Skies Germany Air Berlin, Lutfhansa Slovenia None under Open Skies Greece Olympic Air Spain Air Europa, Iberia, Spanair Hungary Malev Hungarian Airlines Sweden Scandinavian Airlines System Iceland* Icelandair

United Kingdom bmi, British Airways, Virgin Ireland Air Lingus Atlantic Italy Alitalia (United Kingdom is still a member of the EU) * Iceland and Norway are not members of the EU but are included in the 12 Open Skies Agreements Restricted Open Skies Agreements Countries City Pair Verification Required Australia Qantas Virgin Australia Switzerland

Swiss Air Japan Nippon Airways Japan Airlines GSA City Pair Program Search Tool 13 Yale Complying with the Fly America Act and Open Skies Agreements Fly America Act & Open Skies

Agreements Matrix FLY AMERICA ACT US Flag Air Carrier Airline Travel (Origin & Destination) Domestic (US US) Required Open Skies (Member States) Allows for Exception use of EU Requires permitted City Pair

Carrier Check - To use these countries' Air carriers Y N/ A N DOD Funded Awards Y N/ A N Intl (US EU)

N Y Y N Intl (within EU) N Y Y N

A city pair check is required between any point in the US to any point in an Open Sky (Non EU) Member state. If search returns a contracted rate, US flag air carrier is required. Intl (US-Non EU Countries) N Y Y Y Intl (US-Australia) N

Y Y Y Intl (US-Switzerland) N Y Y Y Intl (US-J apan)

N Y Y Y Intl (Within Other Countries) N Y Y N

If no city pair - Y If no city pair - Y If no city pair - Y If no city pair - Y If no city pair - Y If no city pair - Y Y

Y Y No city pair check required when travel is with a Member State carrier between any two points outside US International = Intl 15 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 3301.01 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 Universitys 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 departments award file. Business office personnel should refer to the Fly America Act Checklist and Waiver Form 3301 FR.06 to determine if an exception qualifies for waiver. 16 Flying the Friendly Skies Origin and Destination

Charged to: Airline Mexico City to New York to Madrid NIH award Iberia Airlines Spain Reason: Use of EU Open Skies Airline is acceptable for two points outside US Allowable? Yes Yes S7 Airlines (Russian) Reason: Requires verification that no US flag air carriers are available (None were available) St. Petersburg Russia to Moscow

DOD award New York (JFK) to Sydney Australia Dept. of State Qantas Reason: Requires verification of city pair contract (City Pair is Available) Sydney Australia to Cape Town S. NSF award British Airways Africa Reason: Use of EU Open Skies Airline is acceptable for two points outside US No Yes No

Toronto to Washington D.C. NIH award Air Canada Reason: U.S. Flag Carriers are available. Canada is not eligible under Open Skies for charging Federal F New York to Paris to Geneva NIH award Swiss Air Reason: Requires verification of a city pair contract (City Pair is Available) No 17 Yale Case Studies 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? 19 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 81036 Travel Expense. 20 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? 21 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 81036 Travel Expense (Travel-Unallowable) calculation. 22 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 departments award file. 23 Yale GSA City Pair Search Tool

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 by University staff. The City Pair search tool assists in identifying these fares. The search tool identifies whether a city-pair fare is in effect GSA Website: http://cpsearch.fas.gsa.gov/ 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

Link provided within Egencia FAQs for City Pair Program 25 Using the GSA Search Tool 1. Go to the website: https://cpsearch.fas.gsa.gov/ 2. Select: Enter Site 26 Using the GSA Search Tool 3. Enter Departure and Arrival cities 4. Select: Search FY 17 27

Using the GSA Search Tool 5. Click the Fare links for Fuel Surcharges and Baggage Fees 28 Yale Egencia: Online Booking and Reservations Egencia: Setup Your Egencia Account First time users: Go to: www.Egencia.com Click: Login Enter your username in this format: firstname_lastname_yale Select link: Forgot username and/or password and request a new

password 30 Egencia: Login Page Federal regulations require travelers to use U.S. flag carrier service for all air travel funded by the United States Government. Refer to University Procedure 3301 PR.01 Section 6 for exceptions to the federal requirement. 31

31 Egencia: Search for International Flight The following message appears when an international search is initiated: . 32 Egencia: Online Booking and Reservations Icons Searching for flights: Some flights may be marked with the Preferred Airline icon

This symbol indicates that there may be a price reduction due to certain agreements with this airline 33 33 Open Skies Booking: Scenario #1 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. a) No. b) Yes, and the award is funded by a Dept of Defense (DOD) agency. c) 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. 34 Open Skies Booking: Scenario #1 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. a) No. Not government funded: select any carrier. b) Yes, and the award is funded by a Dept of Defense (DOD) agency. Funded by DOD: select U.S. flag air carriers only c) 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 35

Open Skies Booking: Scenario #2 2. When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract. a) No. b) Yes, and my award is funded by a Dept of Defense (DOD) agency. c) Yes, and my award is NOT funded by a DOD agency. d) 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.) e) 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. 36

Open Skies Booking: Scenario #2 2. When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract. a) No. Select any carrier. b) Yes, and the award is funded by a Dept of Defense (DOD) agency. Select U.S. flag air carriers only. c) Yes, and the award is NOT funded by a DOD agency. Check City-Pair. d) 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 countrys flag carriers. e) 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 countrys flag air carriers. 37 Expense Report: GSA Results Screen

Attach a copy of the GSA results screen to the expense report 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 countrys flag air carrier. 38 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. 39 Websites referenced in this presentation 2 CFR Part 200 (OMB Circular A-81) http://www.ecfr.gov/cgi-bin/text-idx?SID=15d5184c2810c3eef54cd7109663b443&node=pt2.1.200&rgn=div5 Form 3301 FR.06 Fly America Act Waiver Form: Travel on a non-U.S. Carrier https://your.yale.edu/policies-procedures/forms/3301-fr06-documentation-travel-non-us-flag-air-carrier General Services Administration (GSA) Airline City Pair Program Search Tool http://cpsearch.fas.gsa.gov/ General Services Administration (GSA) FAQs

https://www.gsa.gov/portal/category/106159 Guide 1305 GD.07 Determining Allowability, Reasonableness, and Allocability of Costs for Sponsored Projects http://your.yale.edu/sites/default/files/1305gd_07reasonablenessallowability_1.pdf Guide 3301 GD.02 Use of U.S. Flag Carriers for Sponsored Foreign Travel https://your.yale.edu/policies-procedures/guides/3301-gd02-use-us-flag-carriers-sponsored-foreign-travel Policy 3301 Travel on University Business http://your.yale.edu/policies-procedures/policies/3301-travel-university-business Policy 3301.1 Travel on University Business: Air Travel https://your.yale.edu/policies-procedures/policies/3301-travel-university-business#3301.1 Procedure 3301 PR.01 Travel Arrangements for University Business https://your.yale.edu/policies-procedures/procedures/3301-pr01-travel-arrangements-university-business Procedure 1305 PR.04 Unallowable Costs http://your.yale.edu/policies-procedures/procedures/1305-pr04-unallowable-costs Yale Travel Information and Egencia website http://your.yale.edu/administrative-services/travel-relocation-fleet/travel/egencia 40 Questions?

? Email questions to: [email protected] Response will be forthcoming within 2 business days. 41

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