WASHINGTON -- Caribbean Star Airlines (CSA) is seeking
Transportation Department approval to start U.S. service and is
promising to devote "substantial effort and capital" to promote
U.S. tourism to underserved Caribbean destinations.
Fort Lauderdale, Fla.-based CSA is an affiliated company under
common ownership with Caribbean Star Airlines Ltd., an Antiguan
carrier that operates scheduled and charter service in the
Caribbean.
Both entities are owned by holding companies owned by R. Allen
Stanford, chairman and chief executive officer of Stanford
Financial Group.
CSA said it plans to target Caribbean niche markets that have
been ignored by major carriers. Its first U.S. hub would be San
Juan, with Fort Lauderdale added later.
The service would begin July 1, operating from San Juan to
Antigua, St. Kitts, St. Maarten and Tortola. Two more aircraft
would be in service by March 2003.
According to the DOT application, Stanford has invested $2.5
million in CSA, which said it also has obtained a $4.8 million line
of credit.
CSA declined to comment beyond its application, including how
much commission it intends to pay agents.
Antigua has a Category 2 rating from the Federal Aviation
Administration, which means the FAA has determined it is not in
compliance with International Civil Aviation Organization safety
standards.
That means an Antiguan carrier cannot start new service to the
U.S. unless it leases aircraft and crews from the U.S. or an
acceptable third country. However, CSA should not be affected
because it is incorporated and based in the U.S.