The memorandum of understanding (MoU) announced last month will allow up to 110 daily commercial flights to take place between the US and Havana and nine other destinations on the communist island.
However, despite the US authorities now inviting US airlines to submit formal applications to operate the flights, with many routes expected to be set up in months, speakers at Routes Americas 2015 in San Juan, Puerto Rico, warned delegates not to expect numerous new flights immediately.
Peter Cerdá, IATA’s Regional Vice President in the Americas said it could be some time before these available frequencies come to fruition.
He added “While Havana gaining 20 new flights per day will not create an overcapacity, it could be four or five years before all these 110 flights are up and running as we don’t currently have the infrastructure in place to support them. This isn’t necessarily the airports but also hotels and road link.”
While the full impact of the MoU might not be immediate, senior airline delegates at the event also highlighted the potential of growing into Cuba.
Southwest Airlines Managing Director Business Development, David Harvey confirmed the low-cost carrier would be among them pitching for some of these frequencies.
He said: “We have engaged in discussions leading up to this historic signing ceremony and will participate in a US Department of Transportation (DOT) frequency allocation proceeding unfolding over the next several weeks.
“During our planning, we’ve eagerly awaited a green light that would allow us to bring our world famous hospitality and Southwest’s low-fare value to the Cuba marketplace.”
Viva Latin America Chief Executive Officer, Joe Mohan also noted that Cuba could be among those markets under consideration for a future Viva Airlines operation.
He added: “We think that Cuba could be a great opportunity for us. It is an interesting place and with no local carrier registered to fly to the US it provides an excellent opportunity to take advantage of the new traffic rights between the countries.
“We have actually already had conversations with Cuba. We would love to set up an airline tomorrow.”
While the impact may not be immediate, Cuba specialists need to bear in mind US operators could still seek to outbid rivals for beds and ground-handling arrangements
