U.S.-Dominican Republic Accord To ‘Increase Competition’

Negotiations for an open skies agreement between the U.S. and the Dominican Republic (DR) have been finalized, paving the way for airlines to increase their networks between the two countries.

The nations have signed a memorandum of consultations, marking an end to 25 years of talks to enhance the existing bilateral air transport agreement. The respective governments will now work to bring the proposed agreement into force.

Jose Fernandez, U.S. under secretary of state for economic growth, energy and the environment, points to the 2.4 million people of Dominican descent who have made their home in the U.S., as well as the more than four million Americans who visit the DR annually and the 300,000 American citizens residing in the DR.

"Our citizens will welcome the benefits that will accrue from greater competition in the bilateral aviation market," Fernandez says. “In concluding this pro-growth, pro-competition, and pro-consumer agreement, the [DR] would join a community of partners committed to maintaining an open and modern air services market.”

The existing air transport agreement between the U.S. and the DR has been in place since 1986. Among the rights provided, Dominican carriers are able to conduct scheduled services from the country to New York, Miami and two additional points in the mainland U.S. selected by the Dominican government.

Dominican Tourism Minister David Collado says the new open skies accord would enable Dominican airlines to “fly to the entire U.S.,” ensuring there is free competition. The expected increase in air service between the countries is projected to lower the cost of tickets, he adds.

According to OAG Schedules Analyser data, there are 257,600 two-way weekly seats being offered by carriers between the U.S. and the DR at present, up 6.5% year-on-year and some 25% higher than during the same week in 2019.

Twelve airlines provide nonstop service—led by JetBlue Airways, which has a 36.6% share of seat capacity. American Airlines is the second largest, with an 18% share, followed by Delta Air Lines on 11.4% and United Airlines on 11.3%. Frontier Airlines completes the top five with an 8.8% share.

Speaking to Aviation Week in June at the GAD Americas conference in Miami, Monika Infante, the CEO of airport operator Aerodom, said an open skies accord would create major opportunities for DR-based airlines to fly to the U.S., leading to more balance in a market currently dominated by U.S. carriers.

Among the airlines seeking to enter the market is Arajet. The carrier applied to the U.S. Transportation Department for approval to launch flights to the U.S. in March 2023, outlining plans to begin serving New York, Miami and San Juan, Puerto Rico.

Nacim Yala, Arajet's chief commercial and strategy officer, said at Routes Americas 2024 in March that the airline would target cities with large inbound tourism flows, as well as those with a sizable Dominican diaspora.

“It's no secret that New York and Miami are hugely relevant, but we don't plan on stopping there,” he said. “The benefit of a connecting hub is that you can start aggregating small sources of traffic into the hub and distributing it. So, we’ll definitely go to smaller cities in the U.S., but which ones remain a question.”