On August 13, 2020, US Secretary of State Mike Pompeo issued a statement requesting that the US Department of Transportation (“DOT”) suspend private charter flights to all Cuban airports.  This action will suspend all charter flights between the United States and Cuba over which the DOT exercises jurisdiction, except for authorized public charter flights to and from Havana and other private charter flights authorized for limited purposes.  Secretary Pompeo’s statement cites the Administration’s intent to deny economic resources to the regime in order to inhibit its capacity to carry out alleged abuses and interference in Venezuela.

Background

On October 25, 2019, at Secretary Pompeo’s request, the DOT issued a notice that suspended scheduled air service between the United States and Cuban international airports other than Havana’s Jose Marti International Airport.  On January 10, 2020, at Secretary Pompeo’s request, the DOT issued a second notice that suspended all public charter flights between the United States and all Cuban destinations other than Havana.  On May 28, 2020, again in response to a request from the State Department, the DOT issued an order imposing a cap on public charter flights to Havana at 3,600 per year. Please see here and here for our blog posts on the DOT’s previous orders.  According to Secretary Pompeo, the current suspension would prevent charter operators from filling the gap in air service left by the suspensions of non-Havana scheduled air service and public charter service that took effect on December 10, 2019, and March 10, 2020, respectively.

DOT Order

On the same day as Secretary Pompeo’s statement, the DOT issued an order suspending all charter flights between the United States and all airports in Cuba, except for authorized public charter flights to and from Havana and other authorized charter flights for emergency and medical purposes, search and rescue, and other travel deemed to be in the interest of the United States.  The suspension will take effect on October 13, 2020.

The DOT’s suspension applies to charter flights operated by US and foreign air carriers pursuant to exemptions granted by the DOT, including US air taxi and commuter operations, Canadian charter air taxi operations, and all other charter or on-demand air transportation.  The suspension covers nonstop charter flights from the United States to Cuba as well as charter flights stopping at a third country (whether as an intermediate stop or as a behind or beyond point).

In addition, the DOT also tentatively decided to amend, subject to show-cause procedures, all US charter air carrier certificates and all foreign air carrier permits to preclude the operation of charter flights between the United States and Cuba, subject to the exceptions noted above.  Interested parties have until September 3, 2020 to file objections to the DOT’s tentative decision.

Author

Ms Stafford Powell advises on all aspects of outbound trade compliance, including compliance planning, risk assessments, licensing, regulatory interpretations, voluntary disclosures, enforcement actions, internal investigations and audits, mergers and acquisitions and other cross-border activities. She develops compliance training, codes of conduct, compliance procedures and policies. She has particular experience in the financial services, technology/IT services, travel/hospitality, telecommunications, and manufacturing sectors.

Author

Jennifer Trock is chair of Baker McKenzie's International Commercial Practice Group and a member of its Global Aviation Group in Washington, DC. She co-leads the Firm's unmanned aircraft systems (UAS) focus team and is the Chair of the ABA's Forum Air & Space Law. Jennifer has been recognized by Chambers USA, Aviation Regulatory – National (2007-2019) and has also received honors from Euromoney’s Guide to the World’s Leading Aviation Lawyers, Infrastructure Journal and The Washingtonian.

Author

Alex advises clients on compliance with US export controls, trade and economic sanctions, export controls (Export Administration Regulations (EAR); International Traffic in Arms Regulations (ITAR)) and antiboycott controls. He counsels on and prepares filings to submit to the US Government's Committee on Foreign Investment in the United States (CFIUS) with respect to the acquisition of US enterprises by non-US interests. Moreover, Alex advises US and non-US companies in the context of licensing, enforcement actions, internal investigations, compliance audits, mergers and acquisitions and other cross-border transactions, and the design, implementation, and administration of compliance programs. He has negotiated enforcement settlements related to both US sanctions and the EAR.

Author

Will represents domestic and foreign airlines, private aircraft owners, aerospace manufacturers, and other businesses on a range of aviation-related DOT and FAA regulatory matters. Prior to joining Baker McKenzie, Will practiced at another international law firm, where he represented a major US airline in frequency allocation proceedings, antitrust immunity proceedings, and government investigations. He also has substantial experience in antitrust matters, having represented companies in high-profile mergers and acquisitions before DOJ and FTC, antitrust litigation, and civil and criminal investigations.

Author

Alex primarily works with transportation industry clients on transactional, public policy and regulatory matters, including before the US DOT, FAA, CBP, TSA and NTSB. Alex represents domestic and foreign air carriers, airport operators, airport sponsors, technology companies and drone/unmanned aircraft system stakeholders. He has experience handling regulatory counsel for transportation industry transactions, DOT and FAA authorization matters, antitrust immunity proceedings, rulemakings and policy changes, consumer protection issues, and regulatory enforcement matters. Alex also advises on federal and state public policy and government relations.

Author