Yale Fly America Act and Open Skies Agreement

Yale Fly America Act and Open Skies Agreement Charging Foreign Air Carrier Travel to Federal Awards Presented by: Office of Sponsored Projects Revised 08/20/18 PRN: 11/27/2020 1: 57 AM

Topics Covered § Travel Reminders § 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 traveler’s 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, however… 7

Fly America Act Exceptions (continued) 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: • Increase the number of aircraft changes outside the United States by two or more • Extend travel time by at least six hours or more • Require a connecting time of four hours or more at an overseas interchange point. 8

Fly America Act Exceptions (continued) 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 enroute. § 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 in order for the flight to be charged to a federal award. 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: ü Australia* ü European Union ü Japan* ü Switzerland* * City Pair Restrictions Apply • BUT travelers should be familiar with: − U. S. General Services Administration (GSA) City-Pair Program − City-Pair contract fare − GSA negotiated discount fares available to U. S. Government employees only but can restrict use of Open Skies flights − Restricted Open Skies Agreements − prohibit the use of flag carriers from restricted countries if flying between the U. S. and the restricted country if a city-pair contract fare is available even though the traveler is not eligible for the city-pair fare. − GSA City Pairs Program Fare Finder Note: 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 q Austria – Austrian Airlines q Belgium – Brussels Airlines q Bulgaria – Bulgaria Air q Cyprus – Cyprus Airlines q Czech Republic – Czech Airlines q Denmark – Scandinavian Airline q Estonia – None q Finland – Finnair q France – Air France q Germany – Lutfhansa q Greece – Aegean Airline q Hungary – Wizz Air q Iceland* – Icelandair, Wow Air q Ireland – Air Lingus, Ryanair q Italy – Alitalia q Latvia – air. Baltic q Lithuania – None q Luxembourg - Luxair q Malta – Air Malta q Netherlands – KLM q Norway* – Norwegian Air q Poland – LOT Polish Airlines q Portugal – TAP Portugal q Romania – TAROM q Slovakia – None q Slovenia – None q Spain – Air Europa, Iberia q Sweden – Scandinavian Airlines q United Kingdom – British Airways, Virgin Atlantic (United Kingdom is still a member of the EU) * Iceland Norway are not members of the EU but are included in the EU Open Skies Agreements 12

Open Skies Agreements Restricted Open Skies Agreements Countries City Pair Verification Required q Australia § Qantas § Virgin Australia q. Switzerland § Swiss Air q. Japan § All 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 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 University’s 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 department’s 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 Spain NIH award Iberia Airlines Allowable? Yes Reason: Use of EU Open Skies Airline is acceptable for two points outside US St. Petersburg Russia to Moscow DOD award S 7 Airlines (Russian) Yes Reason: Requires verification that no US flag air carriers are available (None were available) New York (JFK) to Sydney Australia Dept. of State Qantas No Reason: Requires verification of city pair contract (City Pair is Available) Sydney Australia to Cape Town S. Africa NSF award British Airways Yes Reason: Use of EU Open Skies Airline is acceptable for two points outside US Toronto to Washington D. C. NIH award Air Canada No Reason: U. S. Flag Carriers are available. Canada is not eligible under Open Skies for charging Federal Funds New York to Paris to Geneva NIH award Swiss Air No Reason: Requires verification of a city pair contract (City Pair is Available) 17

Test Your Knowledge: Case Studies 18

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 Taiwanese 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 R 01 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 spend category SC 758: Travel. Unallowable. 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 the federal award, a city pair contract fare cannot exist between the origin and destination city. In 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 nonsponsored award using the spend category SC 258 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 department’s 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. 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 Link provided within Egencia • Yale Policy: 3301 Travel on University Business • FAQs for City Pair Program 25

Using the GSA Search Tool 1. Go to the website: https: //cpsearch. fas. gsa. gov/ 2. Enter your departure and arrival cities 3. Select: Search FY 18 4. If no city pairs exists, the following message will appear above the Fare Finder tab 26

Yale Egencia: Online Booking and Reservations

Egencia: Setup Your Egencia Account First time users: § Go to: www. Egencia. com § Select: Login § In the USER NAME box enter your Yale email address § Select: Forgot username and/or password and request a new password 28

Egencia Home Page § The Message Center contains Fly America Act Requirements § Favorite Links includes a shortcut to the GSA City Pair Search Tool § Fill in your flight information and select: SEARCH FLIGHTS 29

Egencia: Search for International Flight The following message appears when an international search is initiated: 30

Test Your Knowledge: Scenarios 31

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. 32

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, unless none are available. City Pair conditions do not apply. 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 33

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. 34

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 country’s 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 country’s flag air carriers. 35

Expense Report: GSA Results Screen § Attach a copy of the GSA results screen to the expense report. Note: This GSA results screen must be attached. § 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 country’s flag air carrier. 36

Class Take Aways ü The Fly America Act restricts the use of international flag air carriers charged to federal awards. ü Open Skies Agreements are exceptions to the Fly America Act. ü All Fly America Act exceptions and Open Skies Agreements exceptions must be documented by completing Form 3301 FR. 06. ü Review the Open Skies booking questions to ensure flights comply with the Fly America Act and Open Skies Agreements. ü 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. ü Additional costs for pillows, blankets, Wi-Fi and preferred seating cannot be charged to a federal award. 37

Websites referenced in this presentation 2 CFR Part 200 (OMB Circular A-81) http: //www. ecfr. gov/cgi-bin/text-idx? SID=15 d 5184 c 2810 c 3 eef 54 cd 7109663 b 443&node=pt 2. 1. 200&rgn=div 5 Form 3301 FR. 06 Fly America Act Waiver Form: Travel on a non-U. S. Carrier https: //your. yale. edu/policies-procedures/forms/3301 -fr 06 -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/1305 gd_07 reasonablenessallowability_1. pdf Guide 3301 GD. 02 Use of U. S. Flag Carriers for Sponsored Foreign Travel https: //your. yale. edu/policies-procedures/guides/3301 -gd 02 -use-us-flag-carriers-sponsored-foreign-travel 38

Websites referenced in this presentation OSP: Find the OSP Accountant Assigned to Your Department https: //your. yale. edu/policies-procedures/other/financial-reporting-portfolio-matrix 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/3301 -pr 01 -travel-arrangements-university-business Procedure 1305 PR. 04 Unallowable Costs http: //your. yale. edu/policies-procedures/1305 -pr 04 -unallowable-costs Yale Travel Information and Egencia website http: //your. yale. edu/administrative-services/travel-relocation-fleet/travel/egencia 39

Questions Email questions to: osp. trainings@yale. edu You will receive a response within 2 business days.

Yale Review Questions and Answers

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? 42

Case Study A: Analysis § Q: Is this an allowable charge to an NIH R 01 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. 43

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? 44

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 nonsponsored award using Ledger Account 81036 Travel Expense (Travel-Unallowable) calculation. 45

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 department’s award file. 46

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. 47

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 48

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. 49

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 country’s 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 country’s flag air carriers. 50