Use of U.S.-Flag Air Carriers


  • The Comptroller General of the United States, by Decision B-138942 of June 17, 1975, as amended March 31, 1981, provided guidelines for implementation of Section 5 of the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. 1517).
  • Any air transportation to, from, between, or within a country other than the United States of persons or property, the expense of which will be assisted by NSF funding, must be performed by a U.S.-flag air carrier if service provided by such a carrier is available.
  • For the purposes of this requirement, U.S.-flag air carrier service is considered available even though:
    • Comparable or a different kind of service can be provided at less cost by a foreign-flag air carrier;
    • Foreign-flag air carrier service is preferred by, or is more convenient for, the foundation or traveler; or
    • Service by a foreign-flag air carrier can be paid for in excess foreign currency.
  • The following rules apply unless their application would result in the first or last leg of travel from or to the United States being performed by a foreign-flag carrier:
    • A U.S.-flag air carrier shall be used to destination or, in the absence of direct or through service, to the farthest interchange point on a usually traveled route;
    • If a U.S.-flag air carrier does not serve an origin or interchange point, a foreign-flag air carrier shall be used only to the nearest interchange point on a usually traveled route to connect with a U.S.-flag air carrier.
    • If a U.S.-flag air carrier involuntarily reroutes the traveler via a foreign-flag air carrier, the foreign-flag air carrier may be used notwithstanding the availability of alternate U.S.-flag air carrier service.

(Reprinted from GC-1, NSF Grant General Conditions)