Date: 9 September 2002

To: Deans, Directors, Department Heads, Travel Coordinators, and International Travelers

From: Joe Trubacz Director, Financial Services

The Fly America Act applies to all federal funds, including federal pass-through. It does not apply to match or unrestricted (state) funds. The act specifies the circumstances requiring use of a U.S. flag carrier, and those permitting use of a foreign flag carrier. Individual awards may contain additional restrictions. It is the responsibility of the department to assure compliance with the act and the award.

Foreign travel expenditures, which do not comply with the act, must be charged to other, non-federal funds. All foreign travel is reviewed. In order to avoid payment delays to travelers or travel vendors, any incorrect accounting will be corrected and a copy noting the changes returned to the department. If additional documentation is available which would alter the adjustment, a proposed journal voucher with the documentation and departmental approval may be submitted. Please note, the act requires departure from and arrival in the U.S. by a U.S. flag carrier, without regard to scheduling or cost considerations.

All flights into and out of the U.S. must be on a U.S. flag carrier or on a foreign flag carrier that has a code share agreement with a U.S. flag carrier. In meeting the Fly America Act regulations, travelers will at times be required to route their trips by way of gateway airports. A gateway airport in the U.S. means the last airport in the U.S. from which the traveler departs or the first airport in the U.S. at which the travelers' flight arrives. A gateway airport abroad is defined by the same terms.

In cases were the Fly America Act applies, travelers must use a U.S. flag carrier from their point of origin to their final destination or, in the absence of a direct through service, travelers must fly to a gateway airport for connection service to their final destination.

A factor that will require that a U.S. air service be deemed unavailable is excessive delay. When travel is between a gateway airport in the U.S. to a gateway airport abroad a finding that use of a U.S. flag airline will extend travel time by 24 hours will render the U.S. air carrier "unavailable." FTR 1-3.6b(5)(i)(A).

In addition, when traveling between a gateway airport abroad and a final destination abroad, a U.S. air carrier will be deemed unavailable when a traveler would have to wait at least six hours longer at a gateway interchange point than would be necessary if the traveler took passage on a foreign airline. FTR 1-3.6b(5)(i)(B).

For travel between air services outside the U.S., certificated air service will be considered unavailable if travel by foreign air carrier would eliminate two or more aircraft changes en route. FTR 1-3.6b(5)(ii)(A-C).

FTR 1-3.6c(1) and (3) requires a wavier statement from the traveler or department justifying the use of a foreign air carrier for any part of foreign travel. All wavier statements must accompany travel expense reports when submitted for payment.

Subpart 47.4 of the Federal Acquisition Regulations contains the text of the Fly America Act. One web site where the full text can be easily located is http://www.arnet.gov/far/lodindex.html another is http://www/her/nsf/gov/dge/programs/asi/usflag/asp . Additionally, the UAF Grant and Contract Services web page (http://www.uaf.edu/grcon/forms.html) contains guidelines and a form to be used in obtaining approval for any use of a foreign flag carrier.

Questions may be directed to Dale Anderson, UAF Financial Services Travel Manager, extension 2413, or e-mail fndaa@uaf.edu or Leann Holzmueller Travel Coordinator, extension 6216, fnlrh1@uaf.edu. Departments wishing to confirm compliance in advance will receive expedited response.