Airline ticket discount program cost drops

The cost of the federal government's discount airline ticket program will drop more than $100 million in fiscal 2005, adding to the billions of dollars already saved with the negotiated travel program, according to the General Services Administration.

GSA's Federal Supply Service contracts with 13 airlines to provide City Pair contracts. The program gives federal fliers an advantage over commercial travelers with last seat availability, fully refundable tickets and no charge for cancellations or schedule changes. According to GSA, the City Pair program saves an average of 74 percent off the commercial fare price.

The biggest winners for fiscal 2005 include Delta Air Lines, with 1,426 City Pairs, worth about $252 million; United Airlines with 697 City Pairs, worth about $155 million; and American Airlines with 835 City Pairs, worth $144 million.

Fiscal 2005 City Pair contracts total 4,345 -- 3,616 domestic and 729 international -- and are valued at about $819 million. In fiscal 2004 City Pair contracts totaled $920 million, a $157 million decrease from fiscal 2003. The FSS contracts are awarded competitively to U.S. airlines based on average flight time, price offers, type of service, flight distribution and the number of flights available. Because fliers prefer nonstop flights, 96 percent of the markets that offer nonstop service were awarded contracts, totaling 1,674 destinations.

"For fiscal 2005, these contracts are expected to save the government more than $2 billion," said Donna Bennett, commissioner of GSA's Federal Supply Service in a press release. "GSA and its airline partners continue to offer best value solutions that enable federal agencies to better allocate their resources to fulfill their important missions."

An unrestricted fare from Baltimore/Washington International Airport to Dallas/Fort Worth International Airport for instance, would cost $249. Unrestricted fares, which are available in all markets, do not have to be purchased in advance and there are no minimum or maximum stay requirements, travel time limits, cancellation charges or blackout periods.

The City Pair program also offers capacity-controlled fares in about 2,300 markets. These are lower than unrestricted fares -- a flight from BWI to Dallas/Fort Worth under the capacity-controlled fare would cost $118 -- but the number of flights and seating are limited.

The following airlines were awarded City Pair contracts for 2005: AirTran Airways, Alaska Airlines, American Airlines, American West Airlines, ATA Airlines, Continental Airlines, Delta Air Lines, Frontier Airlines, Midwest Airlines, Northwest Airlines, Southwest Airlines, United Airlines and U.S. Airways.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.