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Order 2016-8-38 - 2016 US-Cuba Frequency Allocation Proceeding (Havana) - Final Order


2016 US-Cuba Frequency Allocation Proceeding

Order 2016-8-38
OST-2016-0021

Issued and Served August 31, 2016

Final Order

By this order the Department makes final its tentative decision to allocate 20 daily frequencies to US air carriers for scheduled passenger services between the United States and Havana, Cuba.

After examining the complete record of applications and responsive pleadings, by Order 2016-7-4, issued on July 7, 2016, the Department tentatively allocated the 20 available US-Cuba daily frequencies as shown:

Carrier Proposed Routing Frequency / Carrier Priority Ranking
Alaska Airlines Los Angeles-Havana Once daily (#1)
American Airlines Miami Havana 4 times daily (#1, 2, 3 & 4)
American Airlines Charlotte-Havana Once daily (#8)
Delta Air Lines New York (JFK)-Havana Once daily (#1)
Delta Air Lines Atlanta-Havana Once daily (#2)
Delta Air Lines Miami-Havana Once daily (#3)
Frontier Airlines Miami-Havana Once daily (#1)
JetBlue Airways Fort Lauderdale-Havana Twice daily (except once on Saturdays) (#1 & 2)
JetBlue Airways New York (JFK)-Havana Once daily (#3)
JetBlue Airways Orlando-Havana Once daily (#5)
Southwest Airlines Fort Lauderdale-Havana Twice daily (#1 & 2)
Southwest Airlines Tampa-Havana Once daily (#7)
Spirit Airlines Fort Lauderdale-Havana Twice daily (#1 & 2)
United Airlines Newark-Havana Once daily (#1)
United Airlines Houston-Havana Once weekly (Saturdays) (#2)

Having carefully reviewed the objections and pleadings filed in response to Order 2016-7-4, the Department finds that no party has presented any arguments that warrant a different outcome in this proceeding.

As noted in the tentative decision, the Department could not select every applicant or every city. However, the Department tentatively found, and continues to believe that, on balance, its selections represent the best approach to achieving maximum public benefits.

As a final matter, the Department has decided to finalize its tentative allocations without awarding backup authority. As noted in the tentative decision, the US-Cuba market has been devoid of scheduled air services for over 50 years and the US-Cuba scheduled service market is at a developmental stage. While it is certainly possible that at least some of the selected carriers might not fully realize their objectives, the Department is not in a position now to anticipate precisely what will occur and what would be the most appropriate regulatory outcome consistent with our continuing goal of maximizing public benefits. Should any of the selected carriers not begin or maintain their proposed services, the Department believes that the public interest would be best served by allowing it to award those unused rights on the basis of a fresh record and in light of the circumstances presented at that time.

By: Jenny Rosenberg

 

 


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