Caribbean Star said it is waiting for the conclusion of lease and asset transfer agreements, before the airline’s operations can be closed.
There is still no firm date on this conclusion and the airline’s spokesperson, Caribbean Airlines Manager of Corporate Communications Laura Cotton explained that this cannot happen until those two major issues are worked out.
Under the much publicised asset purchase agreement, LIAT is expected to purchase facilities, equipment and airplane parts from its former rival.
Caribbean Star has not released the value of the goods being purchased by LIAT.
Cotton explained that Caribbean Star is still working with LIAT’s three shareholder governments to finalise the purchase arrangements. She noted that this process is made longer and more complex by the number of shareholders who are involved in the discussions and the fact that LIAT’s main shareholders are governments.
In respect of the transfer of aircraft leases for Caribbean Star’s seven planes to LIAT, she explained that Caribbean Star, LIAT and the companies through which the aircraft are actually leased are still negotiating this process.
Two aircraft are leased through one company, and Cotton said that the airlines expect to finalise the agreement for the transfer of the leases on those aircraft in a matter of days. The other five planes are owned by another company and the discussions surrounding the transfer of those leases continue and are likely to take longer.
“When the aircraft are transferred over, then LIAT will have all the aircraft they need to have to fly the schedule that they have without Caribbean Star’s staff operating Caribbean Star aircraft,” Cotton said.
She added that once this happens, Caribbean Star will be able to let the majority of its staff go and seek out new careers at LIAT or explore other employment options. There will be need to retain some staff for a time to help the company wind down.
“We are working with LIAT’s HR to provide Caribbean Star employees with vacant positions at LIAT. Caribbean Star employees are notified before the public of vacant positions,” she said, adding that several Star employees have already made such transitions.
Some former workers from Star’s cargo and courier service have gone over to work with LIAT QuikPak, while some of the airport customer service staff have moved over to LIAT as coordinator and supervisors at the airport.
Cotton said that LIAT is also currently interviewing Star crew members to operate the aircraft being transferred to them.