The U.S. and Cuba have reached a bilateral arrangement to establish scheduled air services between the two countries, the U.S. State Department announced Thursday. The sides struck the deal during the third round of technical talks on civil aviation held in Washington, D.C. on December 14, 15 and 16.  Deputy assistant secretary of state for transportation affairs Thomas Engle led the U.S. interagency delegation, and Cuba's ambassador to the U.S. Yuri Gala Lopez led his country's delegation.

This arrangement will continue to allow charter operations and establish scheduled air service, which will, according to a State Department statement, “facilitate an increase in authorized travel, enhance traveler choices, and promote people-to-people links between the two countries.”

“While U.S. law continues to prohibit travel to Cuba for tourist activities, a stronger civil aviation relationship will facilitate growth in authorized travel between our two countries—a critical component of the President’s policy toward Cuba,” the statement said.

The agreement allows airlines from both countries to conclude commercial cooperation agreements such as code sharing and aircraft leasing agreements between them or with third countries’ airlines. The memorandum of understanding ratifies both countries’ commitment to protect civil aviation from acts of unlawful interference and reiterates the commitment to act according to the international conventions related to aviation security, said a Cuban embassy statement.

Immediately following the announcement, American Airlines said it planned to submit a U.S.-Cuba service proposal to the U.S. Department of Transportation in hopes of “timely approval” to introduce scheduled service as soon as possible next year.

 “As the leading carrier to the Caribbean and the leading U.S. airline to Cuba, we look forward to establishing scheduled service to Cuba in 2016, from Miami and other American hubs,” said American Airlines CEO Doug Parker. “We appreciate the Administration's efforts and the hard work of the U.S. negotiators to reach this arrangement.”

American has operated charter service to Cuba since 1991, flying from Miami, Tampa and Los Angeles to the Cuban cities of Camaguey, Cienfuegos, Havana, Holguin and Santa Clara. The airline expects to operate some 1,200 charter flights to Cuba this year, amounting to a 9 percent increase over its capacity in 2014.