GSA said the new discounts should save $2.2 billion this coming fiscal year. (Justin Sullivan / Getty Images)
The General Services Administration announced a new set of discounted air fares for federal travelers Friday, saying the discounts should save $2.2 billion this coming fiscal year.
The airfares are an average 4 percent less than the current City Pair fares for domestic flights and 7 percent less for international flights. The 2014 pre-negotiated rates are up to 59 percent off the commercial airfare rates, according to GSA.
Under the current City Pairs fares, GSA said agencies should save a combined $6 billion and see discounts of up to 73 percent off of commercial airfares. GSA did not provide an explanation for the drop in overall projected savings or prenegotiated rates for 2014, but one factor could be sharp reductions in federal travel amid tighter budgets and travel restrictions.
GSA said its data-driven analytical approach to managing the program and negotiating with the carriers is driving greater cost savings and performance for the City Pair Program.
Under the program, GSA will increase available routes by 25 percent to more than 6,300 locations. Non-stop flights are expanding 20 percent to 1,887 routes. The number of participating airlines will drop from 11 currently to 10[[which one is dropping out?//sw]].