The Fly America Act: BLTA Captive Market Segment
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The "Fly America Act"
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.gsa.gov/portal/content/103191
http://www.tvlon.com/resources/FlyAct.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
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