Written by Justo Torres, Director, Contracts and Grants.
The Fly America Act (FAA) is a U.S. federal law that requires passengers traveling on government-funded flights to use U.S. flag carriers — airlines registered in the United States — for air travel. Enacted in 1974, the FAA promotes and supports U.S. aviation companies by mandating that federal funds allocated for international travel are spent on domestic airlines because a strong aviation industry is considered critical for national security and economic reasons.
However, the law provides certain exceptions, and in recent years, Open Skies Agreements have influenced how the FAA is implemented.
Understanding the act, the exceptions and the broader global aviation agreements are essential for NC State personnel traveling on federal contracts and/or grants to ensure compliance with U.S. government regulations.
While the FAA is generally clear in requiring the use of U.S. flag carriers, these agreements allow for exceptions in certain travel scenarios:
- Unavailable U.S. carrier service: If a U.S. flag carrier does not provide service between two locations, or if the service is not available on a timely schedule, travelers can use a foreign carrier without violating the FAA. This exception is common for flights that depart from remote locations where U.S. carriers may not operate.
- Higher cost: Ticket cost is not an automatic exception, but travelers may be able to use a foreign carrier if it’s less expensive than a U.S. flag carrier, often due to limited scheduling or availability. This exception must be based on a reasonable cost comparison, and the traveler must document the justification.
- Safety or health concerns: If a U.S. carrier cannot provide a safe or medically appropriate flight — for example, due to lack of required medical equipment or seating — travelers are permitted to use a foreign carrier.
- Excessive travel time: In some cases, if the use of a U.S. carrier would require an unnecessarily circuitous route or cause undue inconvenience, such as excessive travel time, travelers may opt for a foreign airline. However, these exceptions must be well-justified and documented.
For assistance determining what qualifies for a waiver of the restrictions of the Fly America Act, please refer to the Fly America Act Waiver Checklist.
Understanding Open Skies Agreements
Open Skies Agreements are bilateral or multilateral pacts between the U.S. and other countries that deregulate air travel between the partner nations, allowing airlines to operate more freely across borders to the benefit of both carriers and consumers. These agreements do not override the FAA but can affect its application because they often remove restrictions on route scheduling, capacity and pricing. If a foreign airline is operating under an Open Skies Agreement, it might be considered equivalent to a U.S. carrier in certain circumstances.
For example, U.S. government travelers may use airlines from countries that are part of the Open Skies Agreement with the U.S. under certain conditions, such as the airline operates a route that a U.S. carrier cannot offer or the flight serves a location not directly accessible via a U.S. airline. This provides greater flexibility for government travelers while still supporting the broader goal of U.S. aviation policy.
The FAA plays a crucial role in promoting U.S. airlines for government-funded international travel. However, exceptions to the rule help accommodate the practical needs of travelers. Furthermore, Open Skies Agreements have provided more opportunities for foreign airlines to compete while still adhering to the FAA’s principles.