U.S.-Cuba Policy Looms at Aviation Industry Conference in Cancun

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09 June 2017 2:40am
U.S.-Cuba Policy Looms at Aviation Industry Conference in Cancun

Less than a year after passenger flights restarted between the United States and Cuba, the future of Cuban travel is once again up in the air.

Aviation sector leaders gathered in Cancun, Mexico said they are concerned that President Donald Trump may reinstate some political and economic restrictions between the two Cold War-era foes.

The Trump administration is reviewing the Obama administration's moves to ease restrictions on travel and investment in Cuba. Trump has criticized the agreements by Obama to thaw relations with the Cuban government.

Airlines, facing uncertainty about a U.S. policy that could make moot millions in recent investments, are loath to criticize the Trump administration's unpredictability, but the industry is unified in saying the thaw should continue.

"Restricting the network of aviation and access to Cuba would be bad news for aviation. Generally, we welcome the extension of access to any country by plane," IATA Director General Alexandre de Juniac told reporters ahead of the June 4-6 conference.

The initial opening prompted a dash to launch flights into Cuba in mid-2016. Some of the early entrants have pulled out, including smaller carriers Frontier Airlines, Silver Airways and Spirit Airlines.

Larger U.S. carriers have pared back flights to smaller Cuban cities to focus on service to the capital, Havana.

American Airlines, Delta Air Lines, United Airlines, Southwest Airlines and JetBlue have all requested increased frequency on various Havana routes. Those requests are in limbo pending the administration's review.

U.S. cruise operators and airlines stand to lose around $712 million in annual revenues if the Trump administration fully reinstates restrictions on travel to Cuba, Washington lobby group Engage Cuba said in a report last week.

When the application process first opened in 2016, an arrangement between the two governments allowed for 20 daily flights to Havana. Cuba reported 4 million arrivals last year, of which 285,000 were Americans. Another 300,000 Cuban Americans visited but are not considered tourists.

Source: Reuters

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