Could Targeting China's Huawei Be Trump Administration's 1st Cuba Policy Action?

Sanctioning Huawei Of China May Be First Strike By Trump Administration Towards Cuba

Shenzhen, People’s Republic of China-based Huawei Technologies Co. Ltd. (2016 revenues exceeded US$75 billion) is a global networking and telecommunications equipment and services company comprised of three operating groups: Carrier, Enterprise, and Consumer.  

The company, which has its United States headquarters in Plano, Texas, is the world’s second-to-third-largest manufacturer of cellular telephone equipment and has substantial revenue streams from exports of products and services to the United States.

In 2017, the company received a subpoena from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, DC.

In 2016, the company received a subpoena from the Bureau of Industry and Security (BIS) of the United States Department of Commerce in Washington, DC.

The subpoenas focused on technology transfer activities (and potential military/civilian dual-use issues) by the company in the Republic of Cuba and Iran, Sudan, and Syria during the last five (5) years.

The investigation of Huawei Technologies Co. Ltd. commenced during the Obama Administration and has continued during the Trump Administration.  

There have been no reported efforts by the Trump Administration to interrupt the investigation begun by career staff at the BIS and the OFAC.  

The Trump Administration may use the potential impact of financial (which could exceed US$2 billion) and United States market-access (most significant) penalties against Huawei Technologies Co. Ltd. as a means to obtain assistance from the government of the People’s Republic of China on issues relating to North Korea and, perhaps, relating to the Republic of Cuba.  

The government of the People's Republic of China may seek relief from any penalties upon Huawei Technologies Co. Ltd. relating to the Republic of Cuba as a condition for supporting Trump Administration efforts relating to North Korea.

Members of the United States Congress and individuals within the Trump Administration (The White House, United States Department of the Treasury, United States Department of State, United States Department of Justice and United States Department of Defense) have an interest in requiring the government of the People’s Republic of China to lessen its support for the Republic of Cuba in return for any relief to Huawei Technologies Co. Ltd.

Any adverse decision impacting the relationship between Huawei Technologies Co. Ltd. and its access to the Republic of Cuba marketplace will unlikely result in commensurate opportunities for United States-based companies.  Other People’s Republic of China-based companies and those located in Japan and in South Korea would be the expected beneficiaries.  

If there are restrictions imposed upon Huawei Technologies Co. Ltd., the government of the Republic of Cuba would not be expected to disrupt roaming or service agreements with New York, New York-based Verizon; Dallas, Texas-based AT&T; Overland Park, Kansas-based Sprint; Bellevue, Washington-based T-Mobile, and Newark, New Jersey-based IDT Corporation; or the server installation and operation agreement (donation) with Menlo Park, California-based Google.

See 19 February 2016 Blog Post:

http://www.cubatrade.org/blog/2016/2/19/huawei-of-china-gaining-in-cuba-while-us-companies-do-not?rq=FCC

From 20 January 2016 to 22 January 2016, The Honorable Daniel Sepulveda, Deputy Assistant Secretary of State and U.S. Coordinator for International Communications and Information Policy led an official fourteen-member delegation to the Republic of Cuba which included The Honorable Thomas Wheeler, Chairman of the Federal Communications Commission (FCC) and FCC staff, representatives from the OFAC, and according to Deputy Assistant Secretary Sepulveda, representatives of “academia, and the private sector.”  

The names of the non-United States government participants have not been disclosed by the United States Department of State.  The Washington, DC-based Information Technology Industry Council confirmed that its president, Mr. Dean Garfield, participated in the delegation “led by the U.S. Ambassador and Deputy Assistant Secretary of State for International Communications and Information Policy Daniel Sepulveda.”  Other private sector participants included representatives of California-based Cisco Systems, Pennsylvania-based Comcast, Sweden-based Ericsson (North American Headquarters in Plano, Texas).

From one private sector participant on 28 January 2016: “The trip was an official U.S. delegation visit by the State Department, and [redacted] was invited to join as part of the delegation.  I can find a point of contact to pass along at the State Department who can answer your questions since they organized the trip.”  

From Chairman Wheeler on 27 January 2016: “Ambassador Daniel Sepulveda from the State Department led our delegation which also included representatives from the Department of the Treasury as well as representatives of the technology community. The inclusion of the private sector in the talks advanced the dialog with real life examples of what was possible.”  

On 1 February 2016, Republic of Cuba government-operated Empresa Nacional de Telecomunicaciones de Cuba S.A. (ETEC S.A.) reported that it would install broadband services within the area of Old Havana using equipment sourced from Shenzhen, People’s Republic of China-based Huawei Technologies Co Ltd. (2015 revenues exceeded US$28 billion).  On 6 November 2015, Huawei Technologies Co Ltd. Reported an agreement to market mobile devices, parts, accessories and to train repair personnel.  The government of the People’s Republic of China has extended substantial financial credits to the government of the Republic of Cuba. 

A challenge for United States-based communications/telecommunications companies and the United States government is how to answer the following inquiry from the Ministry of Communications of the Republic of Cuba: “If we purchase your equipment, how do we know the equipment will not be compromised before it arrives or have an ability to be compromised from abroad after its installation?  Will you augment the specifications of equipment so we may monitor all voice, text, data and email traffic flowing through the equipment?”   

Sun Country Airlines Receives USDOT Authorization To Delay Cuba Flights Until December 2017

Eagan, Minnesota-based Sun Country Airlines, Inc., received authorization in 2016 from the United States Department of Transportation (USDOT) to service two routes: Minneapolis-St. Paul International Airport (MSP) to Santa Clara (SNU), Republic of Cuba, and MSP to Matanzas (VRO), Republic of Cuba.

Sun Country Airlines, Inc., has requested that the USDOT authorize the company to delay implementation of the two routes until December 2017; the service was scheduled to commence in March 2017.  The USDOT has granted the request to delay the service.

The Minneapolis Star-Tribune reported that Sun Country Airlines issued the following statement: “We remain optimistic and continue to work through logistics for dedicated Cuba service, but our priority is ensuring an easy and enjoyable travel experience for our customers upon arrival.”

The company has not posted updated information to its Internet site, www.suncountry.com

LINK TO USDOT APPLICATION

LINK TO USDOT RESPONSE

Cuba's 1st Potentially Five-Star, AAA Diamond Property, Kempinski Manzana La Habana, Welcomes Guests On 31 May 2017

The Gran Hotel Kempinski Manzana La Habana may be the first property in the Republic of Cuba to earn a four or five rating from AAA and/or Forbes Travel Guide.  It's first guests will check-in on 31 May 2017.  The property expects to be fully-operational.

Room rates on the hotel's Internet site for a one-night stay from 9 June 2017 to 10 June 2017 range from US$440.00 (patio room) to US$720.00 (suite familiar) per night.

http://www.cubatrade.org/blog/2017/1/29/cubas-1st-us-standard-based-five-star-hotel-is-about-to-open?rq=Kempinski

Gran Hotel Kempinski Manzana La Habana
Calle San Rafael (entre Monserrate y Zulueta)
La Habana Vieja , 10100, Havana Cuba
Reservations.lahabana@kempinski.com

https://www.kempinski.com/en/havana/gran-hotel-kempinski-la-habana/

Geneva, Switzerland-based Kempinski Hotels SA has a management contract with Republic of Cuba government-operated Gaviota SA., controlled by Republic of Cuba government-operated Grupo de Administracion Empresarial S.A. (Enterprise Management Group), or GAESA, which is, in turn, controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).  

Kempinski Hotels SA operates seventy-five (75) five-star properties in thirty (30) countries.  The Bangkok, Thailand-based Thailand Crown Property Bureau has a majority shareholding in Kempinski AG, which owns Kempinski Hotels SA.

From the Kempinski Hotels Internet site: "Originally built between 1894 and 1917 as the first European style shopping arcade in Cuba, Gran Hotel Kempinski Manzana La Habana is situated in the heart of the old Havana with a direct view of the Capitol and the Great Theatre of Havana and amidst UNESCO World Heritage sites. The famous Castillo del Morro is accessible within a 10 minute drive. Experience the first true luxury hotel in Cuba and indulge yourself while staying in one of our 246 large rooms or suites with extra high ceilings and French windows opening out to the old city. Experience a variety of restaurants and bars, which also includes a one of a kind cigar lounge and a roof top Panoramic Restaurant and Bar with spectacular views over the old city. Relax in our spa, fitness center and rooftop pool."

The value of the renovation project has been estimated as US$30 million to US$50 million.

There are no properties in the Republic of Cuba that currently achieve a AAA Four Diamond Award or AAA Five Diamond Award from the Heathrow, Florida-based AAA (formerly American Automobile Association) or a Four-Star Rating or Five-Star Rating from the Atlanta, Georgia-based Forbes Travel Guide.   Neither AAA nor Forbes Travel Guide have rated any properties in the Republic of Cuba.  From AAA: "AAA’s Diamond Rating System does not cover Cuba at this time."

From Forbes Travel Guide: "At this time we do not have any star rated hotels in Cuba though we continue to watch the destination with interest and look forward to launching the country as a new market in the not too distant future. We are really waiting for the hotel infrastructure to generate levels of service that would qualify them to be considered for an evaluation and potential Star Award.  We have not sent any inspectors into Cuba at this time for this reason though have already made high level visits by members of our Executive office."  The Chief Executive Officer of Forbes Travel Guide, Gerald J. Inzerillo, visited the Republic of Cuba in 2016.

Properties rated five-stars in the Republic of Cuba generally equate with one-star to three-star properties in the United States.

Why Does Sheraton Continue To Have The Most Restrictive Reservation Policy Of Any Hotel In Cuba?

On 27 June 2016, Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (a subsidiary of Bethesda, Maryland-based Marriott International) commenced management of the Hotel Quinta Avenida Habana, which was re-branded as Four Points Sheraton Havana.

Four Points by Sheraton Havana (SPG Category 6)
Avenida 5ta A 76 - 80,
Miramar District
Havana, Cuba

Despite substantive operational issues, the property continues to have the most restrictive payment and cancellation policy of any hotel located in the Republic of Cuba, whether managed by a Republic of Cuba government-operated company or a non-Republic of Cuba-based company.   
 
"Payment And Cancellations

Reservations for this hotel are prepaid and there are NO REFUNDS for changes or cancellation for any guests, including SPG members. Additional charges at the Hotel must be paid in CASH or credit cards authorized for usage in Cuba (Please note-most US Based Credit Cards are NOT accepted in Cuba—check with your individual financial institution)"

http://www.cubatrade.org/blog/2016/6/30/why-did-starwood-initiate-a-reservations-policy-more-restrictive-than-french-spanish-competitors-in-cuba?rq=Starwood

Given that the property was not subject to a "hard opening" when all renovations were completed and staff had completed training, and as a result has endured customer satisfaction issues, there would be value in management having the property implement the least restrictive payment and cancellation policy.  

Without a change, guests are hostage to a potentially uncertain experience which is not consistent with a SPG Category 6 property.  This inconsistency harms all properties located in the Republic of Cuba.

https://www.tripadvisor.com/Hotel_Review-g147271-d1651122-Reviews-Four_Points_by_Sheraton_Havana-Havana_Ciudad_de_la_Habana_Province_Cuba.html

Important for the Four Points Sheraton Havana to be an example of operational flexibility rather than operational rigidity.

Cuba's Government-Operated News Service, Prensa Latina, Is Not Prevented From Re-Opening Office In Washington, DC

Republic of Cuba government-operated Prensa Latina, the official news agency of the Republic of Cuba, re-opened its Washington, DC bureau on Friday, 28 April 2017.  In attendance was Mr. Luis Enrique Gonzalez, president of Prensa Latina.

The Trump Administration did not prevent the re-opening of the bureau, which was authorized by the Obama Administration.

Google Global Cache Operational In Cuba... Despite No Details From The Company

Hanover, New Hampshire-based Dyn Research reported that Mountain View, California-based Google has commenced operation of its rack of servers installed in the Republic of Cuba, based upon an agreement announced by the company with Republic of Cuba government-operated Empresa Nacional de Telecomunicaciones de Cuba S.A. (ETEC S.A.).

Google has not disclosed whether ETEC SA paid for the (rack of) servers, with an estimated value of approximately US$100,000.00 and has not disclosed whether the equipment was manufactured in the United States, assembled in the United States, or delivered from the United States to the Republic of Cuba.

Generally, Google provides the equipment at no cost when an entity achieves certain operational thresholds; for example, number of customers accessing, or seeking to access, Google products. 

The Republic of Cuba was reportedly one of approximately four countries that did not have direct access to a Google Global Cache server(s).

14 December 2016

http://www.cubatrade.org/blog/2016/12/14/googles-lack-of-transparency-harms-us-cuba-commercial-relationship?rq=google

12 December 2016

http://www.cubatrade.org/blog/2016/12/12/google-expands-presence-in-cuba-no-payment-by-cuba?rq=google

5 April 2016

http://www.cubatrade.org/blog/2016/3/21/njhpnlptgxnffjb44hfi74z42x9g6v?rq=google

Courtesy Of Dyn Research

Southwest Airlines Seeks Routes Abandoned By Other Airlines

APPLICATION OF SOUTHWEST AIRLINES CO. FOR AN ADDITIONAL DAILY FREQUENCY

SouthwestAirlinesCo.  (Southwest)  hereby applies for one ofthe three daily U.S. - Havana (HAV) frequencies that will become available when Spirit and Frontier terminate their South Florida - HAV service on May 31, 2017 and June 4, 2017, respectively. With this frequency, Southwest will provide one additional daily flight between Fort Lauderdale (FLL) and HAV, for a total of three daily FLL - HAV flights. Southwest proposes to begin this service no later than November 5, 2017, using either 143-seat 737-700 or 175-seat 737-800 aircraft. Southwest’s large-jet, low-fare service will provide significant public benefits by offering consumers in South Florida and across the United States more travel options to HAV and an enhanced service pattern throughout the day.

Currently Southwest provides two daily FLL - HAV flights and one daily TPA - HAV flight. Southwest also provides twice daily FLL - Varadero (VRA) and once daily FLL - Santa Clara (SNU) service, all with mainline, large aircraft. As such, Southwest provides more frequencies and seats to Cuba from FLL than any other airline. In its initial application to the DOT Southwest applied for a total of six (6) daily FLL – HAV frequencies, illustrating its strong desire to provide convenient service and a robust schedule for consumers in the South Florida market. Consistent with its strong commitment to U.S. - Cuba air service, Southwest is one of the few airlines that has neither abandoned frequencies nor downgraded service on its awarded routes following the Department’s allocation of frequencies on August 31, 2016.

In its Final Decision in this proceeding, the Department found that the high concentration of Cuban Americans living in South Florida justifies allocating a majorityof available frequencies to that region. With Spirit’s termination of two FLL - HAV flights and Frontier’s cessation of its one MIA - HAV flight, South Florida will no longer receive the level of service intended by the Department, particularly from low cost carriers. Granting Southwest an additional daily FLL - HAV frequency to build on its success and investment in the market is the most effective way to address this deficit and ensure that the limited available HAV frequencies benefit consumers to the maximum extent possible.

As the preeminent U.S. low cost carrier, Southwest has demonstrated throughout this proceeding that its FLL - HAV flights serve the large Cuban American population in Southwest Florida effectively by offering a convenient, accessible and lower-fare alternative   to   service   at   MIA.  As   such,  Southwest’s   service   notonlyprovides convenient flight options to South Florida travelers but disciplines fares at MIA, thereby ensuring a competitive U.S. - HAV marketplace. 

As with Southwest’s existing service, the additional daily FLL - HAV frequency requested herein will produce significant consumer benefits viayear-round, daily nonstopserviceonlargeaircraft aswellas convenient one-stop flights to Cuba from numerous interior domestic U.S. cities over Southwest’s extensive network at its FLL gateway.  For the reasons stated above and in its earlier pleadings, Southwest respectfully requests that the Department grant it one daily frequency to provide an additional FLL – HAV flight. This additional service will maximize public benefits by enhancing competition and providing low-cost travel options for U.S. - Cuba passengers.

LINK TO COMPETE DOCUMENT

American Airlines Seeking Additional MIA-HAV Routes For October 2017

American Airlines Asks USDOT For Additional MIA-HAV Route For October 2017
April 24, 2017

“American respectfully requests an allocation of seven weekly U.S.-Havana frequencies, so that it may operate an additional daily year-round service between Miami International Airport (MIA) and Havana’s José Martí International Airport (HAV).  American proposes to launch this service no later than October 5, 2017, with 160-seat Boeing 737-800 aircraft.  This service will build on American’s existing MIA-HAV service to strengthen further the ties between Miami and the people of Cuba, and will maximize public benefits for several reasons.

As American explained throughout the initial proceeding, the largest share of the U.S.- Havana frequencies should be allocated for American’s MIA-HAV flights.  Only American can best meet the needs of local and connecting traffic through its MIA hub, while drawing upon its 25 years of experience in operating flights to Cuba to ensure the success of its scheduled service.

Meeting Local Demand: The Department correctly found that “Cuban Americans travelling to visit relatives will generate the majority of U.S.-Cuba travel demand.” Because half the nation’s Cuban Americans reside in Miami-Dade County, Florida, demand for U.S.-Cuba travel is by far the greatest in this region. MIA, which is significantly closer to the Miami-Dade Cuban-American communities than Fort Lauderdale-Hollywood International Airport (FLL), is therefore the best gateway to link Miami with Cuba.

Superior Connectivity: Because MIA is one of American’s hubs, American’s MIA- HAV service not only best serves local demand, but also creates widespread connectivity across the entire United States.  No other carrier’s service to HAV from MIA or FLL creates anywhere near the same level of connectivity.

Undisputed Leadership in Serving Cuba: American’s experience in continuously operating service to Cuba since 1991 has given American unmatched familiarity with Cuban ground operations and other local conditions, and deep relationships with Cuban aviation authorities. Because existing sanctions make Cuba one of the most difficult destinations for U.S. carriers to serve, American’s history of operating flights to Cuba helps ensure that its scheduled service thrives.

Because of American’s numerous advantages in operating U.S.-Cuba scheduled service, particularly from its MIA hub, American’s service provides the maximum benefits for the traveling public.

Given the demand for Havana service and American’s unique ability to serve that demand most efficiently, American’s current level of MIA-HAV service is far from optimal. At the outset of this proceeding, American applied for the frequencies necessary to support ten daily MIA-HAV flights, and American hopes to offer that level of service if and when U.S.-Havana frequencies are available to do so. Although the Department agreed that Miami “deserve[d] a substantial allocation of Havana frequencies to address the service needs of the large local traffic base,” the Department’s 2016 allocation left American with less than half the frequencies that it sought, while awarding frequencies to several inexperienced carriers. The quick exit by some of these carriers from U.S.-Havana service again creates the opportunity for the Department to allocate the U.S.- Havana frequencies where they will best meet the needs of the traveling public: To American’s service between MIA and HAV.

American’s preference is to grow its MIA-HAV service by more than one daily flight, while also potentially adding service to Havana from other U.S. gateways. The forthcoming termination of Frontier’s and Spirit’s services to Havana will make available enough U.S.-Havana frequencies to support three additional daily flights to Havana by U.S. carriers. Although American is interested in launching additional services to Havana, American acknowledges that Delta and JetBlue have each applied for an additional seven weekly U.S.-Havana frequencies. To avoid a lengthy and resource-consuming contested frequency allocation proceeding, and to expedite the ability of all carriers to bring additional service to U.S.-Havana routes, American is limiting its request to seven weekly U.S.-Havana frequencies at this time. Should the need for a frequency allocation proceeding arise, however, the Department should be aware that American will revise its request upward, to encompass the frequencies necessary to support additional Havana service by American that will create even greater public benefits.

American respectfully requests that the Department act quickly to award these frequencies to American, so that American can soon expand the benefits created by its service to Cuba by launching an additional daily MIA-HAV flight.”

COMPLETE APPLICATION IN PDF FORMAT

Delta Air Lines Asks USDOT For Additional MIA-HAV Route For December 2017

21 April 2017

"Delta plans to expand its service between Miami and Havana, Cuba, offering an additional daily nonstop flight between the cities. Pending regulatory approval from the U.S. Department of Transportation [USDOT], Delta would begin operating this additional frequency by Dec. 15, 2017

“Delta has established a strong framework for sustainable success in the Cuban market,” said Jose “Pepe” Zapata, Delta’s General Manager-Central America and the Caribbean. “The proposed flight would provide additional service and competition for South Florida, which has the largest Cuban-American population in the United States.”

Delta returned to Cuba on Dec. 1, 2016, after a 55-year hiatus with the launch of a nonstop daily flight to Havana from New York’s JFK International Airport, Miami International Airport and the airline’s hometown airport, Hartsfield-Jackson Atlanta International.

Pending governmental approvals, the additional MIA-HAV flight will be available for booking through www.delta.com." 

LINK TO USDOT APPLICATION IN PDF FORMAT

Senator Rubio On "Meet The Press" Shares About Conversation With NSC Staff- Was Cuba On The Agenda?

During an interview on NBC's "Meet The Press" on 23 April 2017, The Honorable Marco Rubio (R- Florida), a member of the United States Senate, shared:

"The National Security Council is going back to its appropriate role, which is like an internal think tank that designs big strategic objectives."

"Just Friday alone I had a conversation with folks at the National Security Council about the Western Hemisphere and their strategy towards it."

There is increasing evidence that Senator Rubio is the most influential Member of the United States Congress with respect to Republic of Cuba-related issues and that while he may not obtain all of the policy changes and regulatory changes for which he advocates, he will probably be the last name on the telephone call list of The Honorable Donald J. Trump, President of the United States, prior to the announcement by the Trump Administration of final decisions relating to the Republic of Cuba.

Links To Posts Relating To Senator Rubio, The Trump Administration and the Republic of Cuba:

http://www.cubatrade.org/blog/2017/2/27/president-trump-mentions-cuba-at-press-conference?rq=Marco%20Rubio

http://www.cubatrade.org/blog/2017/4/1/senator-marco-rubio-r-of-florida-discusses-his-three-discussions-about-cuba-with-president-trump?rq=Marco%20Rubio

http://www.cubatrade.org/blog/2017/3/12/6rhpts5hb63h4xirou3am6ycrexpbk?rq=Marco%20Rubio

What Does JetBlue Know... Or Doesn't Know? Seeking Additional Routes To Cuba

United States Department of Transportation
Washington, DC
20 April 2017

APPLICATION OF JETBLUE AIRWAYS CORPORATION FOR AN EXEMPTION AND ALLOCATION OF FREQUENCIES (DOT-OST-2016-0021)

"In light of Spirit and Frontier terminating service to Havana,  Cuba,  onMay31, 2017, and June 4, 2017, respectively, JetBlue hereby applies for seven weekly frequencies in order to provide additional non-stop service between Fort Lauderdale, Florida and Havana, Cuba, and to inaugurate the first ever non-stop service between Boston, Massachusetts and Havana, Cuba.

JetBlue proposes to begin the additional services on November 1, 2017, in order to capitalize on the success of JetBlue’s initial entry into Cuba, which has provided customers in both countries with access to JetBlue’s low airfares and award-winning service.

JetBlue currently provides daily non-stop service from New York to Havana, daily non-stop service from Orlando to Havana, and 13 times weekly service from Fort Lauderdale to Havana. 

JetBlue wishes to provide additional service from Fort Lauderdale to Havana and requests six weekly frequencies in order to increase its service levels on that route. JetBlue also proposes to begin the first-ever non-stop service between Boston and Havana with Saturday service and requests one weekly frequency in order to inaugurate this service.  JetBlue will use 162-seat Airbus A320 aircraft from its existing fleet with the following schedule:

As such, pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules of Practice, JetBlue requests an exemption from 49 U.S.C. § 41101 authorizing it to engage in scheduled foreign air transportation service of persons, property and mail between Boston, Massachusetts and Havana, Cuba, and an allocation of seven weekly frequencies to serve Boston and Fort Lauderdale.  JetBlue requests that its exemption authority be granted for a period of at least two (2) years and that the seven weekly frequencies be granted for an indefinite basis."

LINK TO FILING IN PDF FORMAT

LINK TO WWW.REGULATIONS.GOV FOR CUBA PLEADINGS

Analysis

Three (3) United States airlines will cease their United States-Republic of Cuba routes; and they each report the same reasons: fewer passengers than expected, higher operating costs than expected, and unsustainable downward pricing competition.

Miramar, Florida-based Spirit Airlines, Inc. (2016 revenues exceeding US$2.3 billion) will be ending its United States-Republic of Cuba operations effective 1 June 2017.

Fort Lauderdale, Florida-based Silver Airways (2016 revenues exceeding US$100 million) will be ending its United States-Republic of Cuba operations effective 22 April 2017.

Denver, Colorado-based Frontier Airlines (2016 revenues exceeding US$1.6 billion) will be ending its United States-Republic of Cuba operations effective 4 June 2017.

Fort Worth, Texas-based American Airlines (2016 revenues exceeding US$40 billion) has reduced flight frequencies and size of aircraft on routes.

Long Island City, New York-based JetBlue Airways (2016 revenues exceeding US$6 billion) has reduced size of aircraft on routes.

However, the three largest United States cruise lines have substantially increased the number of itineraries that include the Republic of Cuba scheduled for 2017 and 2018- at capacity transporting more than 185,000 passengers on more than 100 sailings.

Now, JetBlue Airways seeks additional routes.... Do they know something about what the Trump Administration is planning with respect to how its forthcoming policy review may be implemented?

The cruise lines did not require additional authorizations from the United States Department of State, United States Department of the Treasury or United States Department of Commerce to change their schedules.

The airlines require additional authorization(s) from the United States Department of Transportation (DOT) to service new routes. 

Insightful will be the public comments, including from its competitors, Members of the United States Congress, and Governors relating to the filing by JetBlue Airways... and how the DOT responds. 

LINK TO WWW.REGULATIONS.GOV FOR CUBA PLEADINGS

Governor Of Mississippi Visiting Cuba; Secrecy Similar To Visiting A....

The Honorable Drew Phillip “Phil” Bryant (R), Governor of the State of Mississippi, is visiting the Republic from 19 April to 21 April 2017.  He is the twentieth (20) governor to visit the Republic of Cuba since 1999.  

There was no information about the visit on the Internet site for the governor or the social media platforms used by the governor as of the morning of 20 April 2017.  Updates: No information published through morning of 22 April 2017.  On 23 April 2017, the governor posted two images to his Facebook page along with the following statement:

"I traveled to Cuba last week on a trade mission and was joined by the leadership of Mississippi Farm Bureau. Mississippi has sold poultry and other agriculture products to Cuba since 2001. There is potential to expand trade and free market opportunities in this island nation. I was also pleased to meet with Ambassador Jeffrey DeLaurentis at the U.S. Embassy during our visit."

However, the Ministry of Foreign Affairs of the Republic of Cuba (MINREX) began posting (including images) about the visit to its social media platforms on 19 April 2017.   

The governor is the Chief Marketing Officer (CMO) of the State of Mississippi.... Why the secrecy?  Commercial opportunities relating to the Republic of Cuba should neither be oversold nor undersold, but they do require selling.  What is not yet known:

Names of companies in the delegation
Names and affiliations of the delegation
Source of funding for the delegation
Cost of the delegation

Governor Bryant now has the distinction of having the second-least transparent planning process of the twenty governors who have visited the Republic of Cuba since 1999.  The visit by West Virginia Governor Earl Ray Tomblin in 2016 was the least transparent; although not too far from that of Governor Bryant.

A troubling pattern has emerged whereby Members of Congress and governors have increased the lack of transparency in advance of any visit to the Republic of Cuba and sometimes after a visit to the Republic of Cuba.  

This belies a level of toxicity relating to the Republic of Cuba.  In part, the issues are political- awaiting the decision(s) by the Trump Administration relating to the Republic of Cuba.  In part, the issues are commercial- the government of the Republic of Cuba has yet to permit many of the Obama Administration initiatives relating to opportunities for United States companies.

Years ago, most governors and members of Congress planning to visit the Republic of Cuba sought as much publicity as possible, now they seem to coordinate itineraries as if they were visiting a brothel.

A delegation from the State of Mississippi did visit the Republic of Cuba in February 2017.  That delegation was led by Ms. Rosario "Rose" Boxx, International Trade Director for the Mississippi Development Authority.  

The Honorable William Thad Cochran (R), United States Senator from the State of Mississippi, visited the Republic of Cuba from 19 February 2017 to 22 February 2017 with a group of four (4) members of the United States Senate and one member of the United States House of Representatives; the itinerary included other countries.    LINK TO: http://www.cubatrade.org/blog/2017/2/10/congressional-delegation-to-visit-cuba-4-senators-1-representative

For the period 2010 through 2016, the Port at Pascagoula, Mississippi, ranked 9th of 35 United States ports that have exported food products, agricultural commodities, healthcare products and other authorized products from the United States to the Republic of Cuba.  The Port at Pascagoula reported 160,579 metric tons of product for the period 2010 through 2016; no product was reported for 2015 and 2016.

The State of Mississippi is a source of frozen poultry products exported to the Republic of Cuba.

LINK TO: What Governors Should Consider For A Visit To The Republic Of Cuba

George Ryan (R- Illinois)-  1999/2002
Jesse Ventura (I- Minnesota)- 2002
John Hoeven (R- Nebraska)- 2002
David Heineman (R- Nebraska)- 2005/2006/2007
Kathleen Blanco (D- Louisiana)- 2005
John Balducci (D- Maine)- 2005
Butch Otter (R- Idaho)- 2007
Mike Beebe (D- Arkansas)- 2009
Bill Richardson (D- New Mexico)- 2009/2010
Sonny Perdue (R- Georgia)- 2010
Jay Nixon (D- Missouri) replaced by wife, Georganne Nixon- 2015
Andrew Cuomo (D- New York)- 2015
Asa Hutchinson (R- Arkansas)- 2015
Greg Abbott (R- Texas)- 2015
Terry McAuliffe (D- Virginia)- 2016
Jay Nixon (D- Missouri)- 2016
Lt. Governor Brad Owen (D-Washington)- 2016
John Bel Edwards (D- Louisiana)- 2016
Earl Ray Tomblin (D- West Virginia)- 2016
John Hickenlooper (D- Colorado)- 2017
Phil Bryant (D- Mississippi)- 2017

2 Years Later: What Did NYS Companies Get From Governor Cuomo's 27-Hour Visit To Havana?

Two Years Later…. What Did New York State Companies Get For Governor Cuomo’s Estimated US$150,000.00+ 27-Hour Visit To Cuba?

Was a US$10,000.000 “Advance” Trip Necessary If A Consultant Was Paid US$25,000.00?

What’s Happened- Where’s The Yogurt And Milk And Healthcare Products?

Why No Representatives From PANYNJ, NYSDAM?

Where's The "Agricultural Exchange"?

Governor Staff To Company Ratio Was More Than 2:1

Why Has He Ignored Financial Institutions?

Two years (730 days) ago, The Honorable Andrew Cuomo (D), Governor of the State of New York, embarked on a twenty-seven (27) hour quixotic journey to the Republic of Cuba with a foundation anchored far more upon his focus to be the “first” governor to visit the archipelago since the 17 December 2014 statements by President Barack Obama and President Raul Castro than by his role as the Chief Marketing Officer (CMO) of the State of New York.  

To date, there have been no published reports of exports of products to the Republic of Cuba from the seven (7) companies participating in the 20 April 2015 to 21 April 2015 visit.

The Governor and his staff have embraced the “planting seeds” analogy… There are few seeds that do not create something within two years.

The planning process and follow-up to the April 2015 visit was the third-least transparent of the twenty (20) governors who have visited the Republic of Cuba since 1999.  The visits by West Virginia Governor Earl Ray Tomblin and Mississippi Governor Phil Bryant were the least transparent.

COMPLETE REPORT IN PDF FORMAT

American Airlines & United Airlines Are Correcting Their Internet Sites About Using Credit Cards In Cuba

Texas-based American Airlines and Illinois-based United Airlines have inaccurate language on their respective Internet sites relating to use in the Republic of Cuba of credit cards and debit cards issued by United States-based financial institutions.  Both airlines have been notified and are addressing the issue.

American Airlines

“Cash- no credit cards or debit cards can be used in Cuba."

United Airlines

"Please note that U.S. credit and debit cards currently do not work in Cuba."

Washington-based Alaska Airlines

“Most US credit and debit cards do not work in Cuba yet.”

Texas-based Southwest Airlines

"With very few exceptions, U.S. Credit and Debit cards do not currently work in Cuba, so remember to bring enough cash with you to last your entire trip. U.S. dollars can be exchanged into Cuban convertible currency at the airport, hotels, or exchange houses."

Georgia-based Delta Air Lines

Link to the Internet page of the United States Embassy in Havana, Republic of Cuba, which has this statement: "With very few exceptions, U.S. credit and debit cards do not currently work in Cuba. Please bring enough cash to last your entire trip. U.S. Dollars can be exchanged into Cuban convertible currency (CUC) at most airports, hotels, and exchange houses."

https://cu.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/traveling-to-cuba/

New York-based JetBlue Airways

Link to the Internet page of the United States Embassy in Havana, Republic of Cuba, which has this statement: "With very few exceptions, U.S. credit and debit cards do not currently work in Cuba. Please bring enough cash to last your entire trip. U.S. Dollars can be exchanged into Cuban convertible currency (CUC) at most airports, hotels, and exchange houses."

https://cu.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/traveling-to-cuba/

Background

On 1 March 2015, Purchase, New York-based Mastercard Worldwide removed its restriction (block) on the use of its branded products in the Republic of Cuba.

Currently, Pompano Beach, Florida-based Stonegate Bank and San Juan, Puerto Rico-based Banco Popular of Puerto Rico, and Florida-based Natbank have authorization from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and from the Central Bank of the Republic of Cuba to have their Mastercard-branded credit cards and debit cards valid for use in the Republic of Cuba.

In addition, Visa credit cards and Mastercard credit cards issued by non-United States-based financial institutions are valid for use in the Republic of Cuba; and there are individuals subject to United States jurisdiction who possess such cards and are authorized to use them while within the Republic of Cuba.

In 2016, there was an issue with information on the Internet site of Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (a subsidiary of Bethesda, Maryland-based Marriott International) relating to its Sheraton Four Points Havana property which opened in June 2016.  The company was incorrect in stating on its Internet site that credit cards issued in the United States were not permitted to be used at the property.

The U.S.-Cuba Trade and Economic Council worked with the company to resolve this issue, but it unnecessarily required one-hundred (100) days to resolve.  The following are blog post links about the issue and the process of resolution:

http://www.cubatrade.org/blog/2016/10/20/after-116-days-starwood-finally-changes-its-mastercard-acceptance-policy-for-cuba?rq=credit%20cards

http://www.cubatrade.org/blog/2016/10/28/sjnn09px8h13nagf1hrzkflnqlw5dt?rq=credit%20cards

http://www.cubatrade.org/blog/2016/10/18/natbank-of-florida-confirms-its-mastercard-is-valid-for-use-in-cuba?rq=credit%20cards

US Food/Ag Exports To Cuba Increased (Slightly) In February 2017; Data Issues

ECONOMIC EYE ON CUBA©
April 2017

February 2017 Exports To Cuba Increases .26% Or 2%- 1
Healthcare Product Exports- 2
Humanitarian Donations- 3
Obama Administration Initiatives Product Exports- 3
U.S. Port Export Data- 14

FEBRUARY FOOD/AG EXPORTS INCREASE .26% OR 2%- Exports of food products & agricultural commodities from the United States to the Republic of Cuba in February 2017 were US$18,145,564.00 (or US$17,893,564.00) compared to US$17,847,747.00 in February 2016 and US$13,488,136.00 in February 2015.  

The difference of US$252,000.00 references 157.8 metric tons of rice reported as exported to the Republic of Cuba by the United States Department of Commerce but not reported as exported to the Republic of Cuba in port (Houston, Texas, District) export data.  LINK to Blog Post:   http://www.cubatrade.org/blog/2017/4/4/rice-is-exported-to-cuba-first-in-10-years-and-no-one-said-anything

[Report will be adjusted as new information is available].  

February 2017 exporters included: Wayzata, Minnesota-based Cargill (corn); Atlanta, Georgia-based AJC International (poultry); Atlanta, Georgia-based Intervision Foods (poultry); Bedford, Massachusetts-based Sellari Enterprises (poultry); Chattanooga, Tennessee-based Koch Foods of Chattanooga (poultry); New York, New York-based Globex International (poultry); Wellesley, Massachusetts-based Grove Services (poultry); Salisbury, Maryland-based Perdue Agribusiness (poultry); and Miami, Florida-based Sevino del Bene SpA (unreported; Link to Blog Post: http://www.cubatrade.org/blog/2017/1/18/italys-savino-del-bene-receives-license-from-bis-to-provision-passenger-vessels-in-cuba?rq=savino).

REPORT IN PDF FORMAT

Spirit Airlines Is Third US Carrier To Cease US-Cuba Operations

Three (3) United States airlines will cease their United States-Republic of Cuba routes; and they each report the same reasons: fewer passengers than expected, higher operating costs than expected, and unsustainable downward pricing competition.

Miramar, Florida-based Spirit Airlines, Inc. (2016 revenues exceeding US$2.3 billion) will be ending its United States-Republic of Cuba operations effective 1 June 2017.

Fort Lauderdale, Florida-based Silver Airways (No Revenue Reported) will be ending its United States-Republic of Cuba operations effective 22April 2017.

Denver, Colorado-based Frontier Airlines (2016 revenues exceeding US$1.6 billion) will be ending its United States-Republic of Cuba operations effective 4 June 2017.

Fort Worth, Texas-based American Airlines has reduced flight frequencies and size of aircraft on routes.

Long Island City, New York-based JetBlue Airways has reduced size of aircraft on routes.

Daring Or Enticing The Trump Administration About Cuba- Cruise Lines Take The Lead

Three Largest US Cruise Lines Could Deliver 185,000+ Passengers During 100+ Sailings To Cuba In 2017/2018; More Than US$210 Million In Gross Revenues; US$31+ Million In Cuba Including Port Fees Of US$6+ Million.

US Airlines Gross Revenues From Transporting Passengers To/From Florida In Conjunction With The Cruises Could Exceed US$70 Million; Potential US$3.6 Million To Hotels & Restaurants.

Do The CEO’s Know What Others Don't Know?  Or, Walking A Proverbial Plank?

US$974 Billion & 2,000,000.

There will be something.  There will not be nothing.  

Test-fired.

Perhaps, strength in numbers.

LINK TO 2,680-WORD ANALYSIS IN PDF FORMAT

CEO's Of Companies With US$974 Billion In Revenues Believe Cuba Is Worth The Effort

The forty-seven-plus (47+) United States companies who have a commercial presence in the Republic of Cuba have combined global gross revenues of approximately US$974 billion and employ a combined approximately 2,000,000 men and women throughout the fifty (50) states and other countries.

LINK TO LIST

2,000,000 Employees Of U.S. Companies Have A Connection To Cuba

The forty-seven-plus (47+) United States companies who have a commercial presence in the Republic of Cuba have combined global gross revenues of approximately US$974 billion and employ a combined approximately 2,000,000 men and women throughout the fifty (50) states and other countries.

LINK TO LIST