USA and Cuba sign-up to deal allowing launch of up to 110 daily flights between countries

The United States and Cuba have agreed to launch up to 110 daily commercial passenger flights between the US and Cuba including links to Havana and nine other destinations in the communist island, restoring regular air travel for the first time in more than 50 years. US authorities will now move to officially invite US airlines to submit formal applications to operate the flights, with many of the routes expected to be set up in just a matter of months, according to State officials.

The memorandum of understanding was jointly signed on February 16, 2016 by US Transportation Secretary Anthony Foxx, Assistant Secretary of State for Economic and Business Affairs Charles Rivkin, Cuban Minister of Transportation Adel Yzquierdo Rodriguez and President of the Cuban Civil Aviation Institute (IACC), Ministry of Transportation Colonel Alfredo Cordero Puig.

The MoU allows airlines of each country to operate up to 20 daily scheduled frequencies between the US and Havana and up to ten daily frequencies to any other airport in the country (Camaguey, Cayo Coco, Cayo Largo, Cienfuegos, Holguin, Manzanillo, Matanzas, Santa Clara and Santiago de Cuba). It also permits unlimited charter services to and from any point in Cuba in accordance with the regulations of each country.

The agreement also includes a framework for an increase of frequencies in the future and calls on each country to provide “prompt and thorough consideration” to any request in accordance with the needs of the market and airport infrastructure. It also does not prejudice aircraft operation with no limit on the capacity of aircraft deployed in this market.

“We are excited to announce the availability of new scheduled air service opportunities to Cuba for U.S. carriers, shippers, and the traveling public, and we will conduct this proceeding in a manner designed to maximize public benefits,” said US Transportation Secretary Anthony Foxx.

A pre-cursor to this landmark agreement was reached late last year when the historic deal was agreed in principle opening the way for US airlines to negotiate with Cuba's government to operate up to 20 routes a day to Havana and ten too each of Cuba's other nine major airports. These will be in addition to the current limited charter programmes that have been serving the countries while hefty sanctions have been in place.

US travel to Cuba rose by more than 50 per cent last year and there has been an even greater rise in travel from other countries, since President Barack Obama and President Raul Castro announced a historic detente in late 2014.

The US Secretary of State, John Kerry said the new agreement will facilitate growth in authorised travel between the countries. “In the past, US-Cuba dialogue was narrow, relatively sterile, and rare. Over the past year, it has been comprehensive, business like, and routine,” he said last year.

The new bilateral aviation arrangement will continue to allow charter operations and establish a framework for scheduled air service, which will facilitate an increase in authorised travel, enhance traveller choices, and promote people-to-people links between the two countries, according to US State Department.

Today’s order invites applications from US carriers and initiates a proceeding for DOT to select which US carriers will be able to offer scheduled flights to Cuba, and from which US points. A number of US carriers have already revealed their intent to introduce scheduled flights to Cuba with American Airlines, Delta Air Lines, JetBlue Airways, Southwest Airlines and United Airlines all open to working with the US Department of Transportation to secure rights to fly to Cuba.

In making its selection, the Department said it will consider which proposals will "offer and maintain the best service" to the traveling and shipping public. "The Department recognises the eagerness of US carriers to take advantage of these new Cuba opportunities, and intends to reach a final decision as expeditiously as possible," it said.

United Airlines applauded the formal arrangement to reinstitute air service between the two countries. It said it intends to apply to offer service between "some of its global gateways and Havana" through the Department of Transportation's pending route case.

American Airlines' Latin America gateway hub at Miami International Airport (MIA) will be included in the company’s application for scheduled service to Cuba, the US major confirmed, while it is also considering applying to serve Cuba from other hubs.

“American Airlines commends the US government for its commitment to re-establishing cultural and economic ties between the US and Cuba, and for laying the groundwork to restore scheduled air service between the two countries for the first time in more than 50 years,” said Doug Parker, Chairman and Chief Executive Officer, American Airlines. “We applaud the Administration for making commercial air service a priority."

DOT’s order states that airline applications are due by March 2, 2016; answers to applications are due March 14, 2016; and replies to those answers are due March 21, 2016. It will then seek to reach a verdict during the summer.