"Fly America Act" Captive Market Segment
What is it?
In a nutshell, the Fly America Act, is a U.S. Law that requires that foreign air travel funded with Federal dollars be performed on U.S. flag air carriers, unless one has a good reason not to. This also includes cargo and mail.
Since Baltia, will be the only Airline servicing that route, BLTA will have "captive" customers.
http://www.tvlon.com/resources/FlyAct.html
http://www.gsa.gov/portal/content/103191
In simple and plain English, Premiere Travel will explain the Fly America Act.
The Fly America Act is a government mandate that requires that all travelers funded by the United States Government must be on American flag carrier(s).
Examples of the travelers included are: government employees, U.S. Government contractors, U.S. Government sub-contractors, recipients of grants, recipient of subsidies, etc…
As common with any such provisions, there are many exceptions as several amendments have been introduced over the years, which clarified the rules addressing gray area issues such as service by U.S. flag carriers or lack thereof to certain destinations, the extent of the use of the carriers, code share, joint venture and marketed flights. Basically, a U.S. flag carrier code share flight operated by a foreign carrier is permissible under most conditions. It is a requirement to inform the passenger who the actual operating carrier is.
There are many considerations involved in determining the requirements, qualifications and exceptions to the Fly America Act. Bilateral agreements between governments, flight duration, determination of the gateway cities are some of the factors considered.
Bottom Line: If the U.S. Government is paying for all or portion of the air travel, directly or indirectly, the traveler must comply with the Fly America Act.
http://www.premieretravel.com/government-trav...a-act.html
Captive Market Segment
- The Fly America Act mandates that government funded travel has to fly on US flag airline when service is available
- Virtually all State agencies follow the Fly America Act, as well as many national organizations and foundations
- US Government Agencies reported sending more than 15k passengers to Russia. US carrier required
- US Consulary diplomatic traffic/cargo must fly on a US carrier
- US mail bound for Russia must fly on a US Carrier where service is available
http://investorshangout.com/post/view?id=2148401
What is it?
In a nutshell, the Fly America Act, is a U.S. Law that requires that foreign air travel funded with Federal dollars be performed on U.S. flag air carriers, unless one has a good reason not to. This also includes cargo and mail.
Since Baltia, will be the only Airline servicing that route, BLTA will have "captive" customers.
http://www.tvlon.com/resources/FlyAct.html
http://www.gsa.gov/portal/content/103191
In simple and plain English, Premiere Travel will explain the Fly America Act.
The Fly America Act is a government mandate that requires that all travelers funded by the United States Government must be on American flag carrier(s).
Examples of the travelers included are: government employees, U.S. Government contractors, U.S. Government sub-contractors, recipients of grants, recipient of subsidies, etc…
As common with any such provisions, there are many exceptions as several amendments have been introduced over the years, which clarified the rules addressing gray area issues such as service by U.S. flag carriers or lack thereof to certain destinations, the extent of the use of the carriers, code share, joint venture and marketed flights. Basically, a U.S. flag carrier code share flight operated by a foreign carrier is permissible under most conditions. It is a requirement to inform the passenger who the actual operating carrier is.
There are many considerations involved in determining the requirements, qualifications and exceptions to the Fly America Act. Bilateral agreements between governments, flight duration, determination of the gateway cities are some of the factors considered.
Bottom Line: If the U.S. Government is paying for all or portion of the air travel, directly or indirectly, the traveler must comply with the Fly America Act.
http://www.premieretravel.com/government-trav...a-act.html
Captive Market Segment
- The Fly America Act mandates that government funded travel has to fly on US flag airline when service is available
- Virtually all State agencies follow the Fly America Act, as well as many national organizations and foundations
- US Government Agencies reported sending more than 15k passengers to Russia. US carrier required
- US Consulary diplomatic traffic/cargo must fly on a US carrier
- US mail bound for Russia must fly on a US Carrier where service is available
http://investorshangout.com/post/view?id=2148401
