Southwest Airlines - Free Companion Ticket

B-254858 Nov 22, 1995 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights An airline offers a "free" companion ticket when a round-trip ticket to specified cities is purchased. An agency asks whether the free companion ticket may be used by its employees for personal use when the ticket is obtained incident to official travel. Such use is not allowed under existing General Services Administration (GSA) regulations. Which provide that all promotional materials received by an employee incident to official travel are due the government and may not be retained by the employee. Were to change its regulation to allow an employee to use a companion ticket. Provided that an appropriate official of the agency approves the personal use based on a determination that (1) the ticket is of no use to the agency. View Decision Matter of: Southwest Airlines - Free Companion Ticket File: B-254858 Date: November 22, 1995 An airline offers a "free" companion ticket when a round-trip ticket to specified cities is purchased. An agency asks whether the free companion ticket may be used by its employees for personal use when the ticket is obtained incident to official travel. Such use is not allowed under existing General Services Administration (GSA) regulations, 41 C.F.R. Secs. 101-25.103-2(a) and 301-1.103(b) (1995), which provide that all promotional materials received by an employee incident to official travel are due the government and may not be retained by the employee. However, the General Accounting Office would not object if GSA, consistent with this decision, were to change its regulation to allow an employee to use a companion ticket, provided that an appropriate official of the agency approves the personal use based on a determination that (1) the ticket is of no use to the agency, and (2) the approval will not result in additional cost to the government. DECISION The Regional Counsel, Internal Revenue Service (IRS), Southeast Region, asks whether a "free" companion airline ticket may be used by its employees for personal use (i.e., family member or friend) when the free ticket is obtained incident to official travel. As discussed below, such use is not allowed under the existing General Services Administration (GSA) regulations, but we would not object if GSA were to change its regulations to permit personal use of the ticket under certain conditions. BACKGROUND The Regional Counsel advises that Southwest Airlines offers a free companion ticket when a round-trip ticket is purchased. The promotion is offered for travel among various cities in the United States and Canada and requires that both travelers must fly on the same flight. In effect, Southwest is offering two tickets for the price of one. The Regional Counsel reports that IRS employees have used these promotions for personal use. He further reports that the Chief, Travel Management Branch, Federal Supply Service, GSA, issued an opinion on September 10, 1992, that employees could utilize the free ticket for personal use as long as no other federal employee was making the same trip. However, he reports, the Region's fiscal officer has questioned any personal use of the companion ticket. In view of its September 10, 1992, opinion on the matter, we asked GSA for its comments. In reply, GSA affirms its earlier opinion that, if no other employee will be flying on the same flight, the employee should be allowed to use the companion ticket. The Director of the Administrative Office of the United States Courts has also written to us on this issue because of questions received from judicial branch travelers. The Director takes the same position as GSA. OPINION The general rule is that an employee may not retain any bonus tickets, mileage credits or similar items of value obtained as the result of official travel. Gifts or Prizes Acquired in the Course of Official Travel, B-199656, July 15, 1981. Michael Farbman, et al., 67 Comp.Gen. 79 (1987); Discount Coupons, 63 Comp.Gen. 229 (1984); Department of Energy, B-233388, Mar. 23, 1990. This rule is set forth in GSA's Federal Property Management Regulations, 41 C.F.R. Sec. 101-25.103-2(a), which provide in part as follows: "(a) All promotional materials (e.g., bonus flights, reduced-fare coupons, cash, merchandise, gifts, credits toward future free or reduced costs of services or goods, etc.) received by employees in conjunction with official travel and based on the purchase of a ticket or other services (e.g. car rental) are properly considered to be due the Government and may not be retained by the employee." [1] Notwithstanding the general rule, certain benefits received on behalf of the government are not treated as "promotional materials" governed by GSA's regulations and may be used by employees on official travel. See Discount Coupons, supra, 63 Comp.Gen. 229 at 232 (Question 3); Abraham Frydman, B-212559, Feb. 24, 1984; Michael Farbman, et al., supra, at 82-3.