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GSA Discount Airfares Contracts Save $3.6 Billion

June 21, 2006

GSA # 10250

Contact: Viki Reath (202) 501-1231
viki.reath@gsa.gov

Washington, DC –The U.S. General Services Administration (GSA) today announced that it has awarded one-year contracts, valued at nearly $2 billion, to 11 U.S. airlines, starting Oct. 1, 2006.

“As the premier federal acquisition agency, GSA is gratified to be able to continue to provide the flexibility and choice agencies need to accommodate changing travel patterns," said GSA Administrator Lurita Doan. "GSA's expertise in leveraging the government's buying power continues to result in contracts that average approximately 65 percent of the cost of full fares. For fiscal year 2007, we anticipate that the airfare discounts GSA has negotiated will save government and taxpayers $3.6 billion.

GSA awarded the contracts based on:

  • Average flight time;
  • Price;
  • Service;
  • Flight distribution;
  • Number of flights.;
  • Available seats;
  • Fully refundable tickets;
  • Penalty-free cancellations; and
  • Penalty-free schedule changes .

Following is a list of contracted airlines, which offer best value to federal agencies and taxpayers:

 Carrier  No. of Routes  Estimated Value
 American Airlines  1,322  $448,574,349
 United Airlines  1,176  $542,614,340
 Delta Airlines  811  $334,353,988
 US Airways  517  $277,347,194
 Northwest Airlines  500  $168,472,580
 Southwest Airlines  368  $79,792,497
 AirTran Airways  107  $42,717,141
 Alaska Airlines  79  $50,930,723
 Frontier Airlines  27  $19,953,543
 Midwest Airlines  52  $18,671,798
 ATA  2  $329,448
TOTAL  4,961  $1,983,757,600

GSA Airline Contracts

Examples of the two-tier pricing, where the lower fares require advance planning, are:

 Airports  Regular  Advanced Planning
 Washington (National)/Kansas City  $160  $105
 Detroit/New York (LGA)  $176  $116
 Washington (Baltimore)/Dallas  $251  $126
 Tampa/London  $319  $212
 Honolulu/Tokyo  $260  $201


City Pair airline fares are posted at http://apps.fss.gsa.gov/citypairs/search/.

 

GSA is a centralized, federal procurement, property management, policy development and information provision agency, created by Congress to improve government efficiency and help federal agencies better serve the public.  In this role, GSA acquires products and services on behalf of federal agencies; plays a key role in developing and implementing government-wide policies; provides services and solutions for the office operations of more than one million federal workers; and encourages a citizen-centric relationship with government by providing a single “point of entry” to the information and services citizens need in a timeframe they can appreciate.  This allows citizens to receive accurate, timely and consistent answers and information, and helps federal agencies better respond to citizen inquiries.

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