St. John's --- 22 Nov. 2006 ---- Caribbean Star Airlines Ltd., and LIAT (1974) Ltd. announced today that negotiations toward joining forces and creating a new airline combining the best of the two carriers are proceeding smoothly.

Since talks between the two carriers were officially announced a month ago, project teams which comprised staff from both airlines have convened a series of joint meetings to develop proposals outlining the planned new carrier’s structure and scope of operations.

These proposals will be submitted to the shareholders of both airlines to be ratified in the coming weeks.

“We couldn’t be more pleased at the pace and professionalism of the current planning and negotiations period,” Skip Barnette, president and CEO of Caribbean Star Airlines and its sister carrier Caribbean Sun Airlines, said.

“It’s clear that on both sides everyone understands the urgent mission that we all share, which is to safeguard the future of air travel within the Caribbean. The current state of aviation in the region is weak with two unprofitable carriers remaining alive only by the cash outlay of its shareholders.

"Caribbean Star’s operations cannot continue to be subsidised by our single shareholder when there is little hope for improvement in its capacity to earn profits in the current environment.”

Mark Darby, LIAT’s CEO, echoed Barnette’s statements: “The progress we’ve made over the past month has certainly placed the region’s long-term prospects for viable air service on stronger footing.

"Before we started these talks, LIAT and Caribbean Star were operating within an overly competitive framework that jeopardised the future of both carriers. Everyone understands that LIAT cannot continue to be a taxpayer burden.

"Our teams are focussed on building a self-sustainable, world-class airline that all the people of the Caribbean can be proud of, and that will support the development of the region far into the future.”

Addressing the issue of union representation for staff at the planned new airline, both Barnette and Darby stressed that they consider union organisations as partners, and they recognise and respect every employee’s rights to seek union representation.

“Mark Darby and I would like to make it absolutely clear that staff selected to work for the new company will have the right to seek union representation if they so choose based on those rights afforded to them under the law. We do not intend to impede those rights,” Barnette said.

For more information on Caribbean Star Airlines Ltd., visit www.flycaribbeanstar.com.

For more information on LIAT (1974) Ltd., visit www.liatairline.com.

Source: antiguasun.com