GSA awards $1.4 billion in air travel contracts
Thirteen airlines won General Services Administration contracts for fiscal 2006 worth more than $1.4 billion to provide discount airfares for more than 4,700 routes.
The one-year competitively awarded contracts under GSA's Airline City Pair Program are effective Oct. 1 and will provide nonstop flights to 1,913 markets, covering 95 percent of all nonstop destinations worldwide.
GSA estimates that the contracts will save the government more than $2.8 billion in fiscal 2006.
"It is a remarkable achievement when the airline industry can work together with GSA to provide discounted commercial air passenger transportation services for the federal government," said Barbara Shelton, acting commission of GSA's Federal Acquisition Service.
Under the program, federal travelers receive discounted fares, last-seat availability, full ticket refunds and penalty-free cancellations and schedule changes for 3,978 domestic and 725 international routes. Awards are based on average flight time, the number of flights, price and flight distribution.
For nearly 2,400 city pairs, federal travelers have a choice between two discount fares. The lower fares are reserved for a limited number of first-come, first-serve tickets.
Here are five examples of the fares provided by GSA:
| Ronald Reagan Washington National Airport/Kansas City | $160 | $105 |
|---|---|---|
| Detroit/New York LaGuardia Airport | $168 | $105 |
| Baltimore Washington International Airport/Dallas | $224 | $99 |
| Tampa/London | $307 | $204 |
| Honolulu/Tokyo | $245 | $190 |
American Airlines received the most awards, with 1,182 contacts valued at $350 million, followed by Delta Airlines with 655 awards worth $304 million. United Airlines received 975 awards valued at $293 million and U.S. Airways received 674 awards worth $190 million.
For fiscal 2005, the city pair contracts totaled 4,345 and were valued at $819 million.
COMMENTS
- Let me see if I understand this: The airlines are spending billions of dollars on fuel and cutting employees' pay and defaulting on pensions and laying off excess personnel. Now they are only $50 billion in debt and on their third bankruptcy. And they are going to save the government $2 billion dollars, how can this be? Can someone explain this economic theory to me? GovExec.com reader Posted September 1, 2005 7:13 AM
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| Carrier | No.of City Pairs | Estimated $ Value* |
|---|---|---|
| American Airlines | 1,182 | $350 |
| Delta Airlines | 655 | $304 |
| United Airlines | 975 | $293 |
| US Airways | 674 | $190 |
| Northwest Airlines | 529 | $116 |
| Southwest Airlines | 327 | $56 |
| Alaska Airlines | 86 | $30 |
| America West Airlines | 104 | $26 |
| AirTran Airways | 72 | $19 |
| Frontier Airlines | 26 | $13 |
| Midwest Airlines | 52 | $11 |
| Hawaiian Airlines | 13 | $10 |
| ATA | 8 | $1 |
| TOTAL | 4,703 | $1,419 |
