The US Department of Transportation (DOT) has rejected an application by JetBlue Airways (B6, New York JFK) to revoke Havana International, Cuba traffic rights allocated to rival Alaska Airlines (AS, Seattle Tacoma International) after the Seattle-based carrier requested more time to market its proposed Los Angeles International-Havana route.
Earlier this month, Alaska Airlines asked the DOT to extend the deadline for it to launch flights from November 29, as established in the DOT's order issued on August 31, 2016, to January 5, 2017. Alaska said it needed the additional time to allow it to overcome what it said are "significant operational and commercial challenges" which must be overcome before the route, the US West Coast's only direct service to the Cuban capital, could be launched.
"Alaska believes that introducing the Havana service during the seasonal holiday period would be particularly problematic," it argued. "U.S. consumers' travel to the Caribbean region during the holiday season is predominantly for purposes of vacation. The U.S. government's continuing prohibition against U.S. tourism to Cuba, however, prevents U.S. consumers and their families from taking advantage of the introduction of scheduled service to Cuba to make such vacation trips to Cuba. Alaska believes that an early January 2017 start date will be much more conducive to a successful service launch."
However, in its submission requesting the DOT to strip Alaska of its route allocation, jetBlue said that the challenges Alaska notes were no different from those faced by any of the other carriers which have been given Cuba traffic rights. It further argued that Alaska's decision not to start service during the holiday season was ample evidence that it was neither prepared nor ready to accept the DOT's allocation of Havana route authority.
"Alaska claims that starting Havana service during this time would be 'particularly problematic' but ignores that every other U.S. carrier faces the same seasonal trends. Alaska further points to the continuing U.S. prohibition on tourism related travel to Cuba but presents no reason why a January 2017 start date would make any difference as the ban will likely still exist then and for the foreseeable future. If Alaska is concerned that the ban on tourism related travel will make its route not viable, it should turn its frequency over to the Department for re-allocation to carriers like jetBlue that are prepared to provide service to authorized customers."
jetBlue then proposed using the relinquished authority to develop a daily Boston-Havana service, a proposal the DOT rejected in its decision back in July.
The DOT has since responded to both requests deciding in favour of Alaska Airlines.
In its decision issued on Friday, October 21, the government body said it did not find jetBlue's argument compelling enough to warrant the revocation of Alaska's route authority. It said its original reasoning that Alaska Airlines' service would provide important public interest benefits to the sizeable Cuban American communities resident along the US West Coast, as well as added competition to US East Coast gateways, still stood.
"The Department recognizes that, in granting an extension of the start-up deadline, the anticipated benefits of Alaska’s service might be somewhat delayed," it said. "On balance, however, and in the circumstances presented, the Department has determined that a relatively short delay does not warrant the carrier’s loss of authority and the reallocation of the frequency to an alternative carrier and gateway."
Alaska Airlines has therefore been given until January 5, 2017, to inaugurate its daily Los Angeles-Havana service.