Scheduled U.S.-Cuba Flights Unlikely to Start This Year

Scheduled U.S.-Cuba Flights Unlikely to Start This Year
A meeting in Havana this week failed to resolve technical and regulatory
issues
By DOUG CAMERON
Updated Oct. 1, 2015 3:28 p.m. ET

The U.S. and Cuba are continuing work on re-establishing direct
scheduled commercial flights, a State Department official said Thursday,
though it isn't likely technical and regulatory challenges can be
overcome for services to be launched this year.

A U.S. delegation met with Cuban counterparts in Havana this week for
two days of technical consultations aimed at paving the way for an
informal mechanism that would allow scheduled flights.

The Obama administration has been exploring an informal arrangement that
would allow fliers to book flights direct with airlines rather than via
package tour operators as well as further steps to loosen travel
restrictions for Americans to the island nation despite the decades-old
congressional ban. Officials in August expressed optimism that flights
could start by December, and a number of U.S. airlines have expressed
interest in launching them.

But the State Department official said this week's meeting wasn't
expected to secure an informal agreement on scheduled flights, and that
it isn't clear now when service could start. The official said a third
round of talks with Cuba could be scheduled for this year. "Hopefully
this doesn't take too long, but there's no set timetable," he said.

Big U.S. carriers including American Airlines Group Inc., United
Continental Holdings Inc., Delta Air Lines Inc. and JetBlue Airways
Corp. all stand to benefit from a deal between the U.S. and Cuba to
resume scheduled flights between the countries for the first time in
decades.

All four airlines have said they are eager to serve Cuba with scheduled
flights when allowed and all are familiar with the island after
operating charter flights over the past several years.

"Operationally, we're absolutely ready to go," Scott Laurence, senior
vice president of airline planning at JetBlue, said in an interview.
"Commercially, it's a little bit different."

Mr. Laurence said it was difficult to gauge demand given the market had
been closed for so long to scheduled flights, but he estimated it was
sufficient to support between 10 and 30 flights a day initially.

U.S.-operated services would have to be allocated between airlines, and
one issue discussed at this week's meeting is that Cuba is seeking equal
flying rights for its airlines and U.S. carriers to launch scheduled
services. Cuban aviation regulators and airlines would have to meet a
host of U.S. technical and safety standards, which are overseen by the
Federal Aviation Administration and the Transportation Department.

The FAA declined to comment on discussions with Cuba, though a spokesman
said the country's regulatory oversight hadn't been formally evaluated.
"Normally, a country would have to be evaluated and have to attain a
Category 1 rating," he said, referring to the international three-tiered
system used to assess a country's aviation infrastructure.

Countries such as India that have lost their Category 1 status have in
the past taken several months or even years to regain the top-tier ranking.

The State Department official declined to comment on whether U.S.
carriers could potentially start scheduled service before Cuban airlines.

"Clearly the Cubans are interested in reciprocity," said the official.
"We've been equally clear on the facts of our regulatory environment."

Cubana de Aviacion, Cuba's largest airline, operates a fleet of
Russian-made jets flying to cities in South and Central America, Europe
and Canada.

JetBlue has partnerships with dozens of overseas airlines, and Mr.
Laurence said some kind of deal with Cubana was a possibility if
regulators open the market.

"We would eagerly look at that," he said.

Cubana wasn't immediately available for comment.

Cuba has 10 airports providing international service, and carriers
including Virgin Atlantic Airways, which is part-owned by Delta, have in
recent years launched services to the country.

Write to Doug Cameron at doug.cameron@wsj.com

Source: Scheduled U.S.-Cuba Flights Unlikely to Start This Year - WSJ -
http://www.wsj.com/articles/scheduled-u-s-cuba-flights-unlikely-to-start-this-year-1443719675