Use of Foreign Airlines on Federal Funds

Fly America Act and Open Skies Agreements

Generally, when one is traveling on funds provided by the federal government they must use U.S. Flag carriers. This requirement is outlined in the Fly America Act. International treaties referred to as “Open Skies Agreements” provide a limited exception to the Fly America Act.

Fly America Act. Generally, when one is traveling on funds provided by the federal government they must use U.S. Flag carriers. Such carriers include American, United, Delta, etc. This requirement must be observed even in instances where foreign carriers are cheaper, provide preferred routing, more convenient, or are part of a frequent‐flyer agreement such as Star Alliance. Limited exceptions are contained in the act.

Open Skies Agreements. International treaties referred to as “Open Skies Agreements” also provide a limited exception to the Fly America Act. Where an open skies agreement exists a traveler may use the foreign airline in the situations described in the treaty (generally between the U.S. and the airline’s country) except when the travel is funded by the U.S. Department of Defense.

Detailed information about the Fly America Act and procedures for your travel are available on the Division of Financial Services (DFS) site.