U.S. Food/Ag Exports To Cuba Increased 142% In March 2017

ECONOMIC EYE ON CUBA©
May 2017

March 2017 Food/Ag Exports To Cuba Increased 142% - 1
Healthcare Product Exports Were US$865,949.00- 2
Humanitarian Donations Were US$373,237.00- 3
Obama Administration Initiatives Product Exports- 3
U.S. Port Export Data- 14

MARCH 2017 FOOD/AG EXPORTS TO CUBA INCREASED 142%- Exports of food products & agricultural commodities from the United States to the Republic of Cuba in March 2017 were US$25,018,148.00 compared to US$10,332,130.00 in March 2016 and US$33,207,087.00 March 2015. 

LINK TO COMPLETE REPORT

Starwood/Marriott Now Reporting 36-Month Delay To Manage Hotel Inglaterra; No Reason(s) Provided

An article published by The New York Times on 10 May 2017, "Cuba's New Luxury Hotels Look to Lure Waves of U.S. Tourists" referenced that the Hotel Inglaterra in the city of Havana, Republic of Cuba, will not transition to management by Stamford, Connecticut-based Starwood Hotels & Resorts until December 2019.  

In March 2016, the company reported that the property would be under management in December 2016; recently, the company reported that the property would be under management in December 2017.  No reason(s) have been provided for the thirty-six (36) month delay.

Link To NYT Article: https://www.nytimes.com/2017/05/09/realestate/commercial/cubas-new-luxury-hotels-look-to-lure-waves-of-us-tourists.html?_r=0

Previous USCTEC Blog Post Link:  
http://www.cubatrade.org/blog/2017/2/6/q3ahdoicr1362pc5w0r4xaxb1rh5os?rq=starwood

Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (a subsidiary of Bethesda, Maryland-based Marriott International), is scheduled to open the Hotel Inglaterra on 1 December 2017 in the city of Havana, Republic of Cuba.  The Hotel Inglaterra will be amongst the company's 122-property The Luxury Collection.

On 16 March 2016, Starwood Hotels & Resorts Worldwide reported that the company would in 2016 manage two (2) properties in the Republic of Cuba- the Hotel Quinta Avenida (re-branded as Four Points Sheraton Havana on 27 June 2016) and Hotel Inglaterra; and had signed a Letter of Intent to manage a third property, Hotel Santa Isabel. 

No reason(s) has been provided for the twenty-one month delay in implementing the management contract for the Hotel Inglaterra or the signing of a management contract for the Hotel Santa Isabel.

"HAVANA--(BUSINESS WIRE)-- Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”) (NYSE:HOT) today signed three new hotel deals in Cuba, marking the first U.S. based hospitality company to enter the market in nearly 60 years. This announcement follows receipt of authorization from the U.S. Treasury Department for Starwood to operate hotels in Cuba. Long-time Havana icon, Hotel Inglaterra, will join The Luxury Collection and Hotel Quinta Avenida will become a Four Points by Sheraton. Both hotels will undergo renovations before raising their new brand flags later in 2016. The Company also announced that it has signed a Letter of Intent to convert the famed Hotel Santa Isabel into a member of The Luxury Collection."

The three properties to be managed by Starwood Hotels & Resorts Worldwide are owned by 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).

Marriott International, before acquiring Starwood Hotels & Resorts Worldwide, reported in 2016 that it was exploring property management opportunities in the Republic of Cuba.
 

Acting Assistant Secretary Of State Doesn’t Mention Cuba In Speech… But, Is Expansive During Comments

Excerpts of remarks….

Western Hemisphere: Remarks for the Council of the Americas Conference: Americas Outlook

Remarks
Francisco Palmieri, Acting Assistant Secretary, Bureau of Western Hemisphere Affairs
U.S. Department of State
Washington, DC
May 9, 2017

As Prepared

Good afternoon. Thank you so much to Susan and Eric and the rest of the Council for this opportunity. It is a privilege to be with you today for the 47th Washington Conference of the Americas.

For the nearly 50 years you have held this conference, the Council has underscored what we also know to be true: the Western Hemisphere is and always will be a top priority for the United States.

Strong Bonds, Shared Vision

And, as you know well, the Americas are home to some of the most important markets for our companies.
Strong and healthy regional economies are good for both the United States and for our hemisphere.

That’s why this Administration is committed to expanding security and fostering economic growth in the region.

The Americas represent a key market for U.S. exports. Fortunately for us, the United States is the preferred business partner for most countries in the Western Hemisphere.

Nearly half of all goods and services exported from the United States – $669 billion worth – go north and south. That’s three times more than what we export to China, Japan, and India combined.

With the hemisphere, we are supporting the President’s four trade priorities: promoting U.S. sovereignty; enforcing U.S. trade laws; leveraging U.S. economic strength to expand our goods and services exports; and protecting U.S. intellectual property rights.

We are reviewing existing trade agreements and negotiating new bilateral ones to ensure the benefits to the United States are clear.

Beyond Trade

But, our work together expands beyond trade agreements.

We are also supporting entrepreneurs; fostering innovation; and supporting education.

We understand that for you to do business, we must work to facilitate legitimate trade and travel between the U.S. and the Hemisphere.

Eastern Caribbean

In the Caribbean, we also have strong ties. The United States is the primary trading partner for this region. We had a $4.6 billion trading surplus for the United States in 2016.

However, there are also risks – rising crime and endemic corruption threaten the stability of governments and deprive citizens of their basic rights to security and good governance.

In the Eastern Caribbean, we are focused on dismantling transnational criminal organizations and bolstering police professionalization.

We also promote U.S. exports and support opportunities for the private sector to invest

We focus, for example, on increasing the use of reliable, low-cost sources of energy to help spur economic development and create new opportunities for U.S. companies.

Conclusion and Thanks

We have a busy schedule ahead of us in the Hemisphere.

The United States is committed to engaging with the region based on shared priorities that are vital to the interests of our respective countries.

As business leaders and government officials who follow this Hemisphere, I thank you for your continued partnership and look forward to pressing ahead alongside you.

Excerpts From Reporting By EFE
9 May 2017

US President Donald Trump's policy toward Havana will have "significant differences" over his predecessor, Barack Obama, especially through a "greater emphasis" on human rights within the island, a senior official said Tuesday Of the State Department in Washington, reports EFE.

Trump's government is still immersed in the "comprehensive review" of US policy toward Havana that began after it came to power in January, recalled US Assistant Secretary of State for Latin America Francisco Palmieri.

"As we move forward in this review, I suspect that important differences will emerge in how this government plans to confront the situation in Cuba (compared to the previous administration)," added Palmieri during the Conference of the Americas held annually at the State Department.

"One of the areas that will be a high priority will be to ensure that Cuba makes more substantial progress towards greater respect for human rights in the country, which is certainly an area where we will make greater emphasis when the review is completed,” concluded the official.

The review refers to the process of normalization of bilateral relations initiated by former President Barack Obama in late 2014, including the decision to withdraw Cuba from the State Department's list of states sponsoring terrorism that involves the imposition of sanctions.

In early February, White House spokesman Sean Spicer said the Trump government will prioritize human rights in its "complete review" of US policy toward Cuba.

Since then there has been little news of progress in this review, and no contact has been reported between the Trump Government and General Raul Castro.

During the primary election process in 2015 and 2016 in the United States, Trump was the only Republican candidate for president who supported the policy of opening-up to the Raul Castro government.

But in his search for votes in Florida in the general election, Trump promised to "repeal" President Barack Obama's executive measures "unless the Castro regime" restored "freedoms on the island."

The president seems to have approached the hard line towards Cuba of other members of his party, like Republican Senator Marco Rubio, who this Tuesday encouraged Trump to "recalculate the concessions that have been made to the Cuban dictatorship," During another address at the Conference of the Americas.

LINK TO: Chronology Of Statements About Cuba From The White House

Delta Air Lines Opposing Everyone Requesting US-Cuba Routes

Excerpt From Delta Air Lines Filing With United States Department Of Transportation

“We understand that 21 weekly round-trip frequencies to Havana will become available following Frontier’s and Spirit’s termination of their current U.S.-Havana service. As of today, American, Delta, FedEx, JetBlue, Southwest, and United have filed applications requesting a total of over 35 weekly frequencies. Delta objects to the applications filed by American, FedEx, JetBlue, Southwest, and United to the extent that any grant to them would preclude Delta’s own application for seven weekly frequencies to provide additional service on the Miami-Havana route. Although Delta believes that its proposal would provide superior public benefits to the other proposals, in light of the competing applications and responsive pleadings filed, we would support a decision by the Department to institute a frequency allocation proceeding in this matter.”

Complete Text Of Filing

American Airlines... Brief, To The Point: Opposing Delta, JetBlue & Southwest

Excerpt From American Airlines Filing With United States Department Of Transportation

“American, Delta, JetBlue, and Southwest have filed applications requesting a total of 28 weekly U.S.-Havana frequencies, when only 21 frequencies will become available following Frontier’s and Spirit’s termination of their U.S.-Havana services. American therefore objects to the applications filed by Delta, JetBlue, and Southwest for additional U.S.-Havana frequencies, to the extent that the Department’s granting any of those applications precludes the Department’s grant of American’s application for seven weekly U.S.-Havana frequencies.”

Complete Text Of Filing

Southwest Airlines Opposing JetBlue Airways, American, Delta US-Cuba Route Applications

Excerpt From Southwest Airlines Filing With United States Department Of Transportation

“Southwest Airlines Co. (Southwest) files this Consolidated Answer in response to (1) the Applications of JetBlue, American, and Delta for an allocation of U.S. – Havana frequencies, and (2) the motion of JetBlue to institute a new, formal proceeding to determine how three soon-to-be-available U.S. – HAV frequencies should be allocated.

Southwest filed an application on April 25, 2017, for one of three daily U.S. - Havana (HAV) frequencies that will become available when Spirit and Frontier terminate their HAV service in the coming months, as they have previously announced.  With this frequency, Southwest will provide one additional daily flight between Fort Lauderdale (FLL) and HAV, for a total of three daily flights in this market. JetBlue filed an application for six weekly frequencies between FLL and HAV plus a Saturday-only BOS-HAV flight, while American and Delta each filed applications for one daily frequency for MIA – HAV service. Together, the four applicants are requesting four daily HAV frequencies whereas only three are available. Southwest opposes each of the other applications to the extent they would prevent an allocation of the one daily frequency requested in Southwest’s Application.

As detailed below, Southwest’s fares and service in the FLL – HAV market set it apart among applicant carriers and show conclusively that Southwest merits an additional HAV frequency. Among the four applicants, Southwest offers consumers by far the lowest FLL/MIA - HAV fares. A snapshot of each applicant carrier’s website for FLL/MIA – HAV fares shows that Southwest is offering significantly lower fares than the lowest fares of JetBlue, American and Delta at three different purchase dates: eight weeks, two weeks and one week from the flight departure date (Exhibit WN-1).

As shown above, eight weeks before the travel date, Southwest’s lowest available website fare is 55% below JetBlue’s lowest offered website fare, 52% below American’s and 34% below Delta’s. For travel two weeks and seven days before the date of travel, Southwest fares are also substantially lower than the comparable JetBlue, American and Delta fares for FLL/MIA-HAV travel.

In addition, Southwest currently operates by far the largest aircraft between FLL/MIA and HAV with its 175 seat 737-800 aircraft (Exhibit WN-2). Others vary from 150 seats operated by JetBlue, to 160 seats operated by Delta and American. This gives Southwest a 17% size advantage over JetBlue and 9% over American and Delta.

Southwest thus achieves the greatest output per frequency utilized, i.e., it makes the most productive use among the four applicants of the limited HAV frequencies available. Further, Southwest is one of the only applicants that has consistently served every one of its U.S. – Cuba markets with no reduction(s) in frequency or seat capacity.

When the service records of the four applicant carriers are compared side-by-side and considered against the DOT’s decisional criteria, it is clear that Southwest will make better use of an additional HAV frequency more than any other applicant. Adding an additional FLL – HAV flight will enable Southwest to continue its successful development of the HAV market, bring enormous value to U.S. consumers, and maximize public benefits.

JetBlue now comes before the Department to request a grant of one more FLL- HAV frequency so it can restore the seat capacity it surrendered voluntarily when it down-gauged its airplane on this route. JetBlue dropped 650 seats in its schedule per week and now seeks to add back 972 seats by operating another frequency. If JetBlue were simply to reinstate its original aircraft on its FLL – HAV flights, it could provide 90% of the seats it would gain by acquiring an additional frequency.  Under these circumstances, JetBlue certainly does not warrant a scarce FLL –  HAV frequency before Southwest, if at all.

American was awarded four daily frequencies for MIA-HAV service. No other carrier received an allocation of more than two South Florida (FLL and MIA) – Havana daily frequencies (Exhibit WN-5). For all of the reasons in Southwest’s pleadings and exhibits filed in the previous allocation proceeding, American should not be awarded a fifth frequency for MIA service before Southwest obtains its third frequency for FLL-HAV service. Importantly, Southwest offers much lower fares than American in the South Florida – HAV market. In fact, American’s lowest website fares are approximately double Southwest’s comparable fares for the eight week, two week and one week booking windows shown in Exhibit WN-1. As the Department has recognized, sustained low fares are critical to developing the fledgling HAV market and meeting the needs of the large Cuban-American population in South Florida.  Increasing Southwest’s FLL–HAV frequencies from two to three daily flights will enable it to compete even more effectively against American and continue to restrain its high-fare MIA-HAV pricing.

Further, as the leading U.S. low cost carrier, Southwest is best positioned to step in and replace the low cost carrier service being discontinued by Spirit and Frontier in the FLL/MIA – HAV market, the majority of which was from FLL. Accordingly, allocating one of these frequencies to American at MIA before Southwest at FLL would undermine the competitive structure the Department carefully created for South Florida in its previous allocation decision.

As one of the highest fare carriers in the South Florida – HAV market, Delta’s current daily service provides no consumer fare benefits. As such, its MIA service does nothing to discipline American’s high fare legacy carrier pricing. In fact, in two of the three booking windows Southwest reviewed on carrier websites, Delta’s fare was higher than American’s (Exhibit WN-1). In contrast, as shown in the earlier frequency allocation proceeding, American   reduces   its   fares   significantly   in   response  to competition from Southwest.  Further, as discussed in Southwest’s earlier pleadings,

Delta has an insignificant presence at MIA and lacks connecting options. Southwest is more than twice as large at FLL as Delta is at MIA and Southwest’s FLL service would connect to 27 U.S. points with a third daily frequency, dwarfing Delta’s five connecting points with two daily frequencies (Exhibit WN-6). Based on a totality of factors, Delta’s MIA-HAV proposal is inferior to Southwest’s proposal and certainly should not deprive Southwest of an additional frequency to provide low-fare FLL – HAV service.

Southwest opposes JetBlue’s motion for the Department to institute a formal frequency allocation proceeding. While JetBlue cites the Ashbacker case in support of its motion, the Ashbacker doctrine does not require the new, formal proceeding that JetBlue envisions.  Instead, Ashbacker stands for the proposition that where bona fide applications are mutually exclusive, an applicant must be provided with the “opportunity to show that its [application] will better serve the public interest than will the [competing application].”

Here, the current process governed by the Department’s Rules of Practice will enable the Department to contemporaneously evaluate the merits of each of the applicants’ service proposals and make a comparative selective decision.  As Southwest has done in this Consolidated Answer, each applicant has the opportunity to respond to each other carrier’s application in the normal course of filing answers and other pleadings under the Department’s procedural rules.  There is no need for the   DOT to institute a new, formal proceeding to ensure contemporaneous consideration of all applications, and indeed such a separate proceeding would cause unnecessary delay in the Department’s allocation decision. Moreover, all four of the current applicants submitted voluminous pleadings in support of HAV frequencies over the exact same routes being proposed here in the Department’s 2016 allocation proceeding, thereby ensuring that the record is already extremely well developed. Together, all these factors make the institution of a separate, formal proceeding unnecessary and an inefficient use of both Department and applicant resources.

For the reasons stated above and in its pleadings in the Department’s earlier allocation proceeding, 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. Southwest objects to the applications of JetBlue, American and Deltatotheextentthey wouldprecludetherequestedfrequency allocationto  Id. at 328.”

Complete Text Of Filing

JetBlue Opposes Delta, American and Southwest US-Cuba Route Applications

Excerpts Of JetBlue Airways Submission To United States Department Of Transportation

“JetBlue submitted an application on April 20, 2017, for seven weekly frequencies to supplement its existing Havana service. This was followed by applications from Delta, American and Southwest. Four carriers have now submitted applications collectively seeking 28 weekly United States-Havana frequencies. 

Because only 21 weekly frequencies will become available after Spirit and Frontier terminate service to Havana, JetBlue hereby moves the Department, in accordance with the Ashbacker doctrine, to institute a frequency allocation proceeding to allocate the available frequencies. JetBlue’s service proposal, involving non-stop service between Boston and Havana and additional service between South Florida and Havana, will maximize public benefits and is superior to the competing proposals submitted by Delta, American and Southwest. JetBlue looks forward to demonstrating to the Department why the public benefits and attributes

of its service proposal make it the most deserving applicant for additional United States-Havana frequencies.

JetBlue opposes the applications of Delta, American, and Southwest to the extent they preclude contemporaneous consideration of JetBlue’s own application for United States-Havana frequencies. 

JetBlue also opposes Delta’s motion requesting that the Department take the added administrative step of withdrawing the frequencies previously allocated to Spirit and Frontier. There is no need for such unnecessary action because the Department has already determined that “any frequency not utilized for a period of 90 days (once inaugurated) would be deemed dormant and the allocation with respect to each such frequency would expire automatically and the frequency would revert to the Department for reallocation.”   

The 21 frequencies sought by JetBlue and other carriers will have reverted to the Department by the time that each applicant proposes to start new United States-Havana service later this year utilizing those frequencies. Because Delta’s request adds an unnecessary and procedurally complex step, JetBlue urges the Department to dismiss Delta’s motion as moot.

WHEREFORE, JetBlue respectfully objects to the applications of Delta, American and Southwest, urges the Department to dismiss Delta’s motion as moot, requests that the Department institute a frequency allocation proceeding, and grant any such further relief as the Department deems warranted.”

Complete Text Of Submission

United Airlines/Mesa Airlines Seek Additional Houston-Havana Routes

Excerpts From United Airlines/Mesa Airlines Filing With United States Department of Transportation

“In light of recent reports that Frontier and Spirit plan to suspend indefinitely their Havana services and in response to the recent applications submitted by JetBlue, Delta, American and Southwest for additional frequencies to provide service to Havana from Fort Lauderdale, Boston and Miami, United and Mesa d/b/a United Express (the “Joint Applicants”) affirmatively apply for six weekly U.S.-Havana frequencies to enable United to expand its Saturday-only Houston- Havana service to daily service and for Mesa to obtain underlying exemption authority to operate this service as a United Express carrier. To that end, Mesa applies pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules of Practice for an exemption from 49 U.S.C. § 41101 authorizing Mesa to provide scheduled foreign air transportation of persons, property and mail between Houston and Havana. The Joint Applicants ask that the requested exemption authority for Mesa become effective as soon as possible and that the authority be effective for a period of at least two years, subject to the Department’s standard conditions.

United and Mesa answer the applications of JetBlue, Delta, American and Southwest and state as follows in support of their joint application:

Reallocating six weekly Havana frequencies to United will allow United and its customers to continue to benefit from the successful early results of its Saturday Houston-Havana service. United now plans to offer consumers convenient daily nonstop flights between United’s world class hub at Houston George Bush Intercontinental Airport and Havana’s José Martí International Airport to the benefit of passengers traveling in the local Houston-Havana market as well as passengers traveling between points served behind United’s Houston hub network and Havana. The Miami Herald has reported and Official Airline Guide (“OAG”) published schedules indicate that Frontier intends to suspend its Miami-Havana service on June 4, 2017. Likewise, media reports published on April 17, 2017 indicate that Spirit will cease Havana service by the end of May 2017. The Department should not allow these valuable frequencies – which the United States Government worked so diligently to secure – to become dormant. As the Department is aware, frequencies are subject to the condition that they will become dormant and revert automatically to the Department if they are not used for a period of 90 days. See Order 2016-8-38 at 14.

United can make expeditious and more efficient use of these valuable frequencies to establish daily service on the successful Houston-Havana route and assures the Department that it stands ready to use these six frequencies on a year-round basis.  United proposes to begin daily service between Houston and Havana on October 28, 2017 commensurate with the launch of the IATA winter 2017-18 season. United will use either Boeing B737 aircraft from its existing fleet or Embraer E175 aircraft from Mesa’s existing fleet, as conditions warrant.

In order to fully implement the proposed arrangement and maximize United’s flexibility to provide Houston-Havana services, Mesa requires and hereby applies for underlying exemption authority to provide scheduled service on the Houston-Havana route. Mesa is a Nevada corporation with its principal office at 410 North 44th Street, Suite 700, Phoenix, AZ, 85008, and a citizen of the United States within the meaning of 49 U.S.C. § 40102(a)(15). Mesa holds various certificates of public convenience and necessity and exemptions authorizing it to engage in scheduled air transportation of persons, property and mail, and Mesa is clearly fit, willing and able to provide the proposed services. See, e.g., Order 2008-4-26 (Open-Skies Certificate) and Notice of Action Taken dated August 16, 2016 in Docket DOT-OST-2016-0147 (U.S.-Mexico exemption). Its proposed service between Houston and Havana is not materially different in terms of aircraft size or stage length from its previously authorized interstate and foreign air services. Mesa requests that the Department take official notice, pursuant to Rule 24 of the Department’s Rules of Practice, of all other data on file with the Department necessary to establish its fitness.

The authority sought herein is fully consistent with the Memorandum of Understanding of February 16, 2016 between the United States and the Republic of Cuba (“MOU”). The MOU permits carriers of the two countries to operate scheduled services between any point or points in the United States and any point or points in Cuba, subject to a frequency limitation of 20 daily frequencies to Havana.  See MOU, Section 1 and Annex I.  Indeed, the Department has issued similar exemption authority and frequencies to other U.S. carriers and there now appear to be, or soon will be, U.S.-Havana frequencies available. In addition, the MOU permits cooperative marketing arrangements such as the “United Express” services proposed here. See MOU, Section 7. The proposed services are not projected to utilize more than 10 million gallons of fuel annually and, in any event, Mesa does not envision having any difficulties in acquiring fuel for these services.

As United indicated in its March 2, 2016 application and subsequent filings in this docket, its Houston-Havana flights serve the nation’s fourth largest metropolitan area out of United’s hub gateway to Latin America while also reaching the eighth largest Cuban American population in the U.S. See Exhibit UA-R102. It is worth noting that Houston is one of only two cities west of the Mississippi River that were awarded U.S.-Havana routes. See Order 2016-7-4 (“Show Cause Order”) at 6. United’s Havana service from Houston continues to develop and shows strong enough demand to support an expansion from Saturday only to daily service using appropriately sized capacity that Mesa’s Embraer E175 aircraft offer. Today, United’s Saturday flight connects 20 U.S. points on a roundtrip basis with Havana and reaches almost 200,000 Cuban Americans throughout the country. Exhibits UA-R106 and UA-R107. With the planned change to daily service, United would connect 27 points in the western and central United States.

Recognizing the merits of United’s service proposal, the Department determined that United’s Houston-Havana flights would be “consistent with the Department’s stated goals and the public interest” insofar as Houston George Bush Intercontinental Airport “is a major hub with connections to cities across the central and western United States” with “significant local traffic potential.” Show Cause Order at 8-9. With the lion’s share of these scarce and valuable frequencies already earmarked for Florida and recent cessations of service from Florida indicating there may be more capacity than demand in that market, the Department should capitalize on this opportunity to promote carrier competition, gateway diversity and consumer choice and convenience by reallocating six frequencies to United. In addition, this Joint Answer and Application is well supported by the Houston Airport System.  See Attachment 1.

Should the Department decide that a route proceeding is necessary or appropriate to reallocate the Frontier and Spirit frequencies, United reserves the right to actively participate in any such proceeding, to demonstrate the comparative and compelling benefits of United’s service proposal and to contest the merits and claimed benefits of any other carrier application.

WHEREFORE, United urges the Department to reallocate six frequencies to United to be used for daily service between Houston and Havana, grant Mesa’s application for underlying exemption authority to provide scheduled service on this route and grant such other relief as the Department may deem appropriate.”

Complete Text Of Filing In PDF Format

FedEx Seeking Authorization For Monday-Friday MIA-HAV All-Cargo Service

Excerpts From FedEx Filing With United States Department of Transportation

“Federal Express Corporation (“FedEx”) hereby submits this consolidated Answer to the recent filings of JetBlue, Delta, American, Southwest, and United in the above-captioned Department of Transportation (“the Department”) docket wherein those carriers seek award of additional U.S.-Havana, Cuba (“HAV”) daily frequencies ostensibly becoming available for re- allocation by the Department after Spirit and Frontier cease their U.S.-HAV air services. Given that this potentially available HAV frequency supply already outnumbers the carrier requests – i.e., four carriers have collectively applied for allocation of the three daily HAV frequencies currently held by Spirit and Frontier – FedEx supports JetBlue’s motion to institute a frequency allocation proceeding for the Department's adjudication of this matter.

In fact, and as further described herein, FedEx hereby submits its application for allocation of a single daily scheduled frequency to operate all-cargo service between Miami, Florida (MIA) and HAV and for the necessary exemption authority for this MIA-HAV air service. FedEx, however, would respectfully note that a U.S.-HAV frequency allocation proceeding regarding the HAV frequencies currently held by Spirit and Frontier would be premature if it occurred before Spirit and Frontier either formally surrendered their HAV frequencies or the 90-day dormancy period for those frequencies had elapsed. Until one of these events occurs, there are actually no available HAV frequencies to re-allocate.

Moreover, with respect to the 90-day dormancy condition attached to these frequencies, it is not a foregone conclusion that the required timeframe will have run for the HAV frequencies at-issue by the time of the Fall 2017 service start dates proposed in the other carriers’ HAV frequency applications. Accordingly, FedEx would respectfully request that any frequency allocation proceeding instituted in this matter not occur until the HAV frequencies currently held by Spirit and Frontier in fact are available for re-allocation. And, at that appropriate time, FedEx looks forward to demonstrating how, as the only U.S. all-cargo carrier participant in the overall U.S.-Cuba Frequency Allocation Proceeding, granting FedEx’s HAV frequency request would maximize the public benefit for U.S. shippers and U.S. commerce overall.

Notwithstanding the foregoing, and to the extent required at this juncture, FedEx submits its application both for allocation of a single daily scheduled frequency to operate all-cargo service between MIA and HAV and for exemption authority under 49 U.S.C. §40109, as more fully set forth below.  Insupport of itsapplication and inaccordancewith 14 C.F.R. §302.303, the Department's Order Instituting Proceeding and Inviting Applications, and the MOU, FedEx....

In conclusion, FedEx respectfully requests that the Department accept FedEx’s application for allocation of a single daily scheduled frequency to operate all-cargo service (Monday-Friday) between MIA and HAV and for exemption authority relating thereto, that the Department institute a frequency allocation proceeding for this matter at the appropriate time when there are HAV frequencies actually available for re-allocation and include FedEx’s application in said proceeding, and that the Department grant any such further relief deemed warranted.”

Complete Text In PDF Format

Senator Rubio Of Florida Speaks Again About Cuba; Is Most Influential Member Of Congress For Companies

One member of the United States Senate is today the most influential member of the United States Congress with respect to Republic of Cuba-related issues: The Honorable Marco Rubio (R) of Florida.

He is the Chairman of the Subcommittee on Western Hemisphere, Transnational Crime, Civilian Security, Democracy, Human Rights, and Global Women’s Issues of the Foreign Relations Committee of the United States Senate.  He is also a member of the Committee on Appropriations, Select Committee on Intelligence, and Committee on Small Business and Entrepreneurship.

As he prepares for an expected second opportunity to seek the nomination of the Republican Party to be its candidate for the presidency, and continues to seek to be an influential national voice within the Republican Party, he needs to view any impact to changes in United States policies and regulations relating to the Republic of Cuba upon the State of Florida in macro-terms rather than the micro-terms of a member of the House of Representatives who focuses upon one district within a state. 

As a result, there is pragmatic distance between his public desire for substantial changes to United States policies and regulations relating to the Republic of Cuba and measured acceptance of changes to United States policies and regulations; with the measured acceptance being partially influenced by the interests of United States-based companies, specifically those operating (and employing) within the State of Florida, State of New York and State of Texas among others from which financial contributions will be sought.  Link: List of United States Companies with A Presence in The Republic of Cuba

The Honorable Marco Rubio (R- Florida)
Washington Conference on the Americas
United States Department of State
Washington, DC

9 May 2017

Excerpts from Remarks:

“I hope that we will, in a strategic way, recalculate the concessions that have been made with the dictatorship in Cuba."

“I fear that too much time has been used to placate hostile governments.”

Video of Remarks

https://www.c-span.org/video/?428237-1/senator-marco-rubio-calls-renewed-focus-western-hemisphere

Blog Post Mentioning Senator Marco Rubio & Comments About The Republic Of Cuba

23 April 2017

http://www.cubatrade.org/blog/2017/4/23/senator-rubio-on-meet-the-press-shares-about-conversation-with-nsc-staff-was-cuba-on-the-agenda?rq=Marco%20Rubio

5 April 2017

http://www.cubatrade.org/blog/2017/4/5/from-politico-usda-secretary-nominee-confirmation-delayed-due-to-cuba?rq=Marco%20Rubio

1 April 2017

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

16 February 2017

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

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