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US airlines and the Cuba route awards Part 1: The US DoT slices up many pieces of the Havana pie

Analysis

US regulators have decided to spread Havana award rights among eight operators - a mix of global full service airlines, medium frills low cost carriers and ULCCs. Unsurprisingly, given the concentration of Cuban Americans residing in the region, South Florida features prominently in the tentative award approvals.

In theory, the DoT's proposed route structure ensures that customers travelling to Havana have access to a wider range of fare prices and product offerings. In many respects the agency had little choice but to accommodate as many airlines as possible for service to Havana - in order to ensure that consumers had an array of service providers as scheduled air service resumes between the US and Cuba.

There may be some quibbles regarding the tentative route awards to Havana, but the route composition proposed by the DoT is not likely to change drastically. The agency's route dispersal reflects certain expectations that the agency would institute a certain level of competitive diversity on new services to Havana.

(This is Part 1 in a series examining US-Cuba route awards. Part 2 will examine markets other than Havana)

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