The General Service Administration renewed its City-Pair Program contract, estimating it will save federal taxpayers $6 billion dollars in FY2010 which begins October 1. The program setting new travel rates offers a 68% discount on federal air travel rates. The new contract comes at a time when airlines are deeply hurting and the federal government is subsidizing the $4 billion Cash-for-Clunkers program and is yet another example of how little the government does for this ailing industry as compared to other segments of the economy. While others are bailed out, the airline industry pays yet again.

The contracts will secure an estimated $9.2 billion worth of air travel over 4,973 city pairs at a cost of only $2.9 billion to the taxpayer. United was awarded the greatest number of city pairs at 1,340 with an estimated value of $959.5 million. GSA manages more than 11 percent of the government’s total procurement dollars

City pairs are sets of origins and destinations that form the basis for one-way ticket pricing for travel between cities. The City-Pair Program contracts set average federal rates at 68 percent below full commercial fares, providing federal travelers the flexibility to book one-way, multi-leg and round-trip airline flights. The annual contracts cover 3,750 domestic and 1,223 international city pairs.

“By leveraging the federal government’s buying power, GSA offers our customers deeply discounted commercial airfares,” said Commissioner James A. Williams, of GSA’s Federal Acquisition Service. “We strive to consistently provide the best value to federal agencies and the U.S. taxpayers. This program would not be successful without the airline industries’ sustained partnership and participation.”

The 2010 City Pairs renewed contracts are effective Oct. 1, 2009, through Sept. 30, 2010, and were awarded to 11 airlines. GSA awarded these contracts based on average flight time; price; service; flight distribution; number of flights; available seats; and availability of fully refundable tickets, penalty-free cancellations, and schedule changes.

United
1,340 city pairs
$859.5 million estimated value

Delta
1,254
$781.9 million

American
989
$510.2 million

US Airways
984
$539.3 million

Alaska
150
$91.6 million

Air Tran
141
$61.9 million

JetBlue
63
$10.9 million

Midwest Express
26
$10.1 million

Frontier
14
$22.3 million

Mesa
7
$4.1 million

Virgin America
5
$2.8 million
City Pair airline fares are posted on the web here .

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