FAR 47.403-2—Air transport agreements between the United States and foreign governments.
Plain-English Summary
FAR 47.403-2 creates a specific exception to the general Comptroller General guidance on using U.S.-flag air carriers. It addresses foreign-flag air transportation provided under an air transport agreement between the United States and a foreign government, and it ties that exception to two conditions: the agreement must be consistent with the international aviation policy goals in 49 U.S.C. 1502(b), and it must provide reciprocal rights and benefits. In practical terms, this means that when those treaty- or agreement-based conditions are met, contractors and agencies are not barred from using the foreign-flag carrier and no penalty should be imposed for doing so. The section matters because it prevents the general U.S.-flag preference rules from overriding approved international aviation arrangements, while still preserving the policy objective of reciprocal access and benefits for U.S. carriers and travelers. For federal contracting, the rule is important in travel planning, cost allowability, and compliance reviews involving overseas transportation.
Key Rules
Agreement-based exception
A foreign-flag air carrier may be used when it is operating under an air transport agreement between the United States and a foreign government. This section creates an express exception to the general guidance in FAR 47.403.
No penalty for compliant use
If the carrier is covered by a qualifying air transport agreement, no penalty may be imposed for using that foreign-flag carrier. The agreement removes the normal adverse consequence that might otherwise apply under the U.S.-flag preference rules.
Policy consistency required
The air transport agreement must be consistent with the international aviation policy goals stated in 49 U.S.C. 1502(b). This ensures the exception is limited to agreements that align with broader U.S. aviation policy.
Reciprocal rights and benefits
The agreement must provide reciprocal rights and benefits. In other words, the foreign government must afford comparable access or advantages to the United States, not merely permit one-way use of its carriers.
Guidelines do not override agreement
Nothing in the Comptroller General guidelines referenced in FAR 47.403 can be read to prohibit use of a foreign-flag carrier when the agreement conditions are met. The agreement controls over the general guidance in this narrow circumstance.
Responsibilities
Contracting Officer
Determine whether the planned foreign-flag air transportation falls within a qualifying U.S.-foreign air transport agreement and whether the agreement meets the statutory policy and reciprocity conditions. Ensure travel or transportation decisions are not treated as noncompliant when the exception applies.
Contractor
Use foreign-flag air transportation only when it is covered by a qualifying agreement and be prepared to support that the carrier and route are within the agreement’s scope. Maintain documentation showing why the foreign-flag carrier was permissible if questioned in an audit or cost review.
Agency
Apply the exception consistently in travel and transportation policy implementation, and avoid imposing penalties or disallowances where the agreement authorizes foreign-flag use. Provide internal guidance so personnel understand when the exception applies.
Travel/Transportation Approver or Reviewer
Verify that the carrier use is tied to a qualifying agreement before approving or challenging the transportation choice. Confirm that the exception is not being used for convenience where no qualifying agreement exists.
Practical Implications
This section is a narrow safe harbor: foreign-flag air travel is allowed only when it is covered by a qualifying bilateral or similar air transport agreement, not simply because it is cheaper or more convenient.
The biggest compliance risk is assuming that any international flight on a foreign carrier is automatically acceptable; users should confirm the agreement and its scope before relying on the exception.
Documentation matters. Contractors and agencies should retain evidence of the applicable agreement and why it satisfies the reciprocity and policy requirements in case of audit, voucher review, or cost challenge.
The rule protects against penalties, but it does not create a blanket waiver for all foreign-flag travel; if the agreement does not meet the statutory conditions, the general U.S.-flag preference framework may still apply.
In day-to-day practice, travel planners should check route, carrier, and agreement coverage early, because the availability of the exception can affect booking decisions, reimbursement, and allowability determinations.
Official Regulatory Text
Nothing in the guidelines of the Comptroller General (see 47.403 ) shall preclude, and no penalty shall attend, the use of a foreign-flag air carrier that provides transportation under an air transport agreement between the United States and a foreign government, the terms of which are consistent with the international aviation policy goals at 49 U.S.C. 1502(b) and provide reciprocal rights and benefits.