St. John's---Oct. 6, 2006----Caribbean Star Airlines confirmed today that it has entered into discussions with LIAT toward possibly joining forces and creating a new airline combining the best of the two carriers. It is anticipated that the talks, which have been ongoing for several weeks on an informal basis, will accelerate with today’s news that LIAT’s Board of Directors has authorized the carrier to pursue negotiations with Caribbean Star on a formal basis.

Skip Barnette, president and CEO of Caribbean Star Airlines and its sister carrier, Caribbean Sun Airlines, commented on the discussions with LIAT, saying: “While competition is the best system in some environments, cooperation appears to be the better avenue for Caribbean Star, LIAT and the region. We applaud today’s decision by the LIAT Board and look forward to exploring our options on a formal basis in the coming days and weeks.”

From its base in St. John’s, Antigua, Caribbean Star serves 12 gateways within the region with 637 weekly flights. The carrier operates a fleet of 11 aircraft – four brand-new state-of-the-art Dash-8 Q300s, plus seven Dash-8 300s – each with a 50-seat capacity.

About Caribbean Star Airlines and Caribbean Sun Airlines

Privately held Caribbean Star Airlines Limited was incorporated in Antigua in January 2000. Its sister airline Caribbean Sun Airlines Inc., based in Fort Lauderdale, Florida, launched its maiden flight in January 2003. Caribbean Star Airlines Limited and Caribbean Sun Airlines Inc. are affiliated but separate companies. The air service provided by each carrier is operated independently of the other, and the rules applicable to travel on each airline may be different. More information about Caribbean Star Airlines and Caribbean Sun Airlines is available at their respective websites, www.flycaribbeanstar.com and www.flycsa.com.