The United States and Cuba took another progressive leap toward normalizing relations on Tuesday by signing an agreement to restore regular air service between the two countries for the first time in five decades.

U.S-Cuba Air Service Agreement

Under the agreement, U.S. air carriers will be allowed to apply for commercial flights to Cuba, while travelers who fall under 1 of 12 categories will be permitted to fly between the nations.

The terms of the agreement also allow each country to operate 20 daily round-trip flights between the U.S. and Havana, and 10 daily round-trip flights between the U.S. and other international airports in Cuba.

"Today is a historic day in the relationship between Cuba and the US," said U.S. Transportation Secretary Anthony Foxx, who signed the deal with Cuban Transportation Minister Adel Yzquierdo Rodriguez in Havana Tuesday morning. "It represents a critically important milestone in the US effort to engage with Cuba," he added, reports The Associated Press.

New Cuba Opportunities

Starting on Tuesday, U.S. air carriers were invited to apply to provide scheduled passenger and cargo flights. 

"We are excited to announce the availability of new scheduled air service opportunities to Cuba for U.S. carriers, shippers, and the traveling public, and we will conduct this proceeding in a manner designed to maximize public benefits," said Foxx in a statement released by the U.S. Department of Transportation (DOT).

Meanwhile, Rodriguez called the agreement "an important step that will soon permit the establishment of regular flights between the United States and Cuba."

The Obama administration hopes commercial air traffic can resume operating on a daily basis between the former Cold War foes by next autumn.

The agreement marks a major step forward in President Barack Obama's plan to normalize relations with Cuba before he leaves office. It also comes more than a year after he first announced his commitment to re-establish diplomatic ties with Cuba back in November 2014. He is expected to visit Havana by the end of March.

Travel Between U.S. and Cuba Will Increase

As of now, all flights between the U.S. and Cuba are arranged by charter and depart from Florida. Last year, almost 160,000 people travelled to Cuba from the U.S. for leisure, despite the hassle and high cost. However, once commercial flights start transporting people between the nations, hundreds of thousands of U.S. travelers are expected to pour into the country each year, since the travel process will be much easier.

Although the ban against tourism in Cuba has never been legally lifted, travelers are allowed to visit the county for other reasons, including professional meetings and distributing information to Cubans. Officials are also very relaxed in enforcing the bar against tourism.