B-138942, JUN 17, 1975

B-138942, JUN 17, 1975

SUBJECT: GUIDELINES FOR IMPLEMENTATION OF SECTION 5 OF THE INTERNATIONAL AIR TRANSPORTATION FAIR COMPETITIVE PRACTICES ACT OF 1974

HEADS OF DEPARTMENTS, AGENCIES, AND OTHERS CONCERNED:

THESE GUIDELINES WILL BE CONSIDERED BY THE GENERAL ACCOUNTING OFFICE IN CARRYING OUT ITS RESPONSIBILITIES UNDER SECTION 5, PUBLIC LAW 93 623, 88 STAT. 2104 (49 U.S.C. 1517). SECTION 5 REQUIRES, IN THE ABSENCE OF SATISFACTORY PROOF OF NECESSITY, THE DISALLOWANCE OF EXPENDITURES FROM APPROPRIATED FUNDS FOR GOVERNMENT-FINANCED COMMERCIAL FOREIGN AIR TRANSPORTATION PERFORMED BY AN AIR CARRIER NOT HOLDING A CERTIFICATE UNDER SECTION 401 OF THE FEDERAL AVIATION ACT OF 1958. THESE GUIDELINES WILL REQUIRE THE EXECUTIVE DEPARTMENTS, AGENCIES, AND INSTRUMENTALITIES OF THE UNITED STATES (HEREINAFTER REFERRED TO AS "AGENCY") TO MODIFY THEIR CURRENT REGULATIONS CONCERNING GOVERNMENT FINANCED COMMERCIAL FOREIGN AIR TRANSPORTATION TO AVOID DISALLOWANCE OF EXPENDITURES THAT PREVIOUSLY WOULD HAVE BEEN ALLOWED.

1. CERTIFICATED AIR CARRIERS (THOSE HOLDING CERTIFICATES UNDER SECTION 401 OF THE FEDERAL AVIATION ACT OF 1958, 49 U.S.C. 1371 (1970) MUST BE USED FOR ALL GOVERNMENT-FINANCED COMMERCIAL FOREIGN AIR TRANSPORTATION OF PERSONS OR PROPERTY IF SERVICE PROVIDED BY THOSE CARRIERS IS "AVAILABLE."

2. GENERALLY, PASSENGER OR FREIGHT SERVICE BY A CERTIFICATED AIR CARRIER IS "AVAILABLE" IF THE CARRIER CAN PERFORM THE COMMERCIAL FOREIGN AIR TRANSPORTATION NEEDED BY THE AGENCY AND IF THE SERVICE WILL ACCOMPLISH THE AGENCY'S MISSION. EXPENDITURES FOR SERVICE FURNISHED BY A NON- CERTIFICATED AIR CARRIER GENERALLY WILL BE ALLOWED ONLY WHEN SERVICE BY A CERTIFICATED AIR CARRIER OR CARRIERS WAS "UNAVAILABLE."

3. PASSENGER OR FREIGHT SERVICE BY A CERTIFICATED AIR CARRIER IS CONSIDERED "AVAILABLE" EVEN THOUGH:

(A) COMPARABLE OR A DIFFERENT KIND OF SERVICE BY A NON-CERTIFICATED AIR CARRIER COSTS LESS, OR

(B) SERVICE BY A NON-CERTIFICATED AIR CARRIER CAN BE PAID FOR IN EXCESS FOREIGN CURRENCY, OR

(C) SERVICE BY A NON-CERTIFICATED AIR CARRIER IS PREFERRED BY THE AGENCY OR TRAVELER NEEDING AIR TRANSPORTATION, OR

(D) SERVICE BY A NON-CERTIFICATED AIR CARRIER IS MORE CONVENIENT FOR THE AGENCY OR TRAVELER NEEDING AIR TRANSPORTATION.

4. PASSENGER SERVICE BY A CERTIFICATED AIR CARRIER WILL BE CONSIDERED TO BE "UNAVAILABLE":

(A) WHEN THE TRAVELER, WHILE EN ROUTE, HAS TO WAIT SIX HOURS OR MORE TO TRANSFER TO A CERTIFICATED AIR CARRIER TO PROCEED TO THE INTENDED DESTINATION, OR

(B) WHEN ANY FLIGHT BY A CERTIFICATED AIR CARRIER IS INTERRUPTED BY A STOP ANTICIPATED TO BE SIX HOURS OR MORE FOR REFUELING, RELOADING, REPAIRS, ETC., AND NO OTHER FLIGHT BY A CERTIFICATED AIR CARRIER IS AVAILABLE DURING THE SIX HOUR PERIOD, OR

(C) WHEN BY ITSELF OR IN COMBINATION WITH OTHER CERTIFICATED OR NON CERTIFICATED AIR CARRIERS (IF CERTIFICATED AIR CARRIERS ARE "UNAVAILABLE") IT TAKES 12 OR MORE HOURS LONGER FROM THE ORIGIN AIRPORT TO THE DESTINATION AIRPORT TO ACCOMPLISH THE AGENCY'S MISSION THAN WOULD SERVICE BY A NON-CERTIFICATED AIR CARRIER OR CARRIERS.

5. THE COMPTROLLER GENERAL WILL DISALLOW ANY EXPENDITURES FOR COMMERCIAL FOREIGN AIR TRANSPORTATION ON NON-CERTIFICATED AIR CARRIERS UNLESS THERE IS ATTACHED TO THE APPROPRIATE VOUCHER A CERTIFICATE OR MEMORANDUM ADEQUATELY EXPLAINING WHY SERVICE BY CERTIFICATED AIR CARRIERS IS "UNAVAILABLE."

6. ALTHOUGH INTERNATIONAL AIR FREIGHT FORWARDERS AS DEFINED IN 14 C.F.R. SEC. 297.1(C) AND SEC. 297.2 (1974) ENGAGED IN FOREIGN AIR TRANSPORTATION 49 U.S.C. 1301(21)(C)(1970) MAY BE USED FOR GOVERNMENT FINANCED MOVEMENTS OF PROPERTY, THE RULE STATED IN GUIDELINE 5 APPLIES TO THE USE OF UNDERLYING AIR CARRIERS BY INTERNATIONAL AIR FREIGHT FORWARDERS ENGAGED IN SUCH FOREIGN AIR TRANSPORTATION.

7. IN ORDER THAT BILLS SUBMITTED BY INTERNATIONAL AIR FREIGHT FORWARDERS ENGAGED IN FOREIGN AIR TRANSPORTATION MAY BE PAID UPON PRESENTATION, SUCH CARRIERS ARE DIRECTED TO SUBMIT WITH THEIR BILLS A COPY OF THE AIRWAY BILL OR MANIFEST SHOWING THE UNDERLYING AIR CARRIERS UTILIZED WITH SUCH JUSTIFICATION CERTIFICATES OR MEMORANDA AS THEY MAY HAVE FOR THE USE OF UNDERLYING NON-CERTIFICATED AIR CARRIERS.