diff --git a/libraries/AP_Rally/AP_Rally.cpp b/libraries/AP_Rally/AP_Rally.cpp
index c8c586e5b01aa..d3b8284a963aa 100644
--- a/libraries/AP_Rally/AP_Rally.cpp
+++ b/libraries/AP_Rally/AP_Rally.cpp
@@ -129,13 +129,9 @@ Location AP_Rally::rally_location_to_location(const RallyLocation &rally_loc) co
         rally_loc.lat,
         rally_loc.lng,
         rally_loc.alt * 100,
-        Location::AltFrame::ABOVE_HOME
+        (rally_loc.alt_frame_valid == 1) ? Location::AltFrame(rally_loc.alt_frame) : Location::AltFrame::ABOVE_HOME
     };
 
-    // notionally the following call can fail, but we have no facility
-    // to return that fact here:
-    ret.change_alt_frame(Location::AltFrame::ABSOLUTE);
-
     return ret;
 }
 
diff --git a/libraries/AP_Rally/AP_Rally.h b/libraries/AP_Rally/AP_Rally.h
index 0eda3e2fd826a..0b4f34957e548 100644
--- a/libraries/AP_Rally/AP_Rally.h
+++ b/libraries/AP_Rally/AP_Rally.h
@@ -30,9 +30,16 @@ struct PACKED RallyLocation {
     int16_t alt;        //transit altitude (and loiter altitude) in meters (absolute);
     int16_t break_alt;  //when autolanding, break out of loiter at this alt (meters)
     uint16_t land_dir;   //when the time comes to auto-land, try to land in this direction (centidegrees)
-    uint8_t flags;      //bit 0 = seek favorable winds when choosing a landing poi
-                        //bit 1 = do auto land after arriving
-                        //all other bits are for future use.
+    union {
+        uint8_t flags; 
+        struct {
+            uint8_t favorable_winds : 1; // bit 0 = seek favorable winds when choosing a landing poi
+            uint8_t do_auto_land    : 1; // bit 1 = do auto land after arriving
+            uint8_t alt_frame_valid : 1; // bit 2 = true if following alt frame value should be used, else Location::AltFrame::ABOVE_HOME
+            uint8_t alt_frame       : 2; // Altitude frame following Location::AltFrame enum
+            uint8_t unused          : 3;
+        };
+    };
 };
 
 /// @class    AP_Rally