Developments are moving swiftly in the
ongoing talks between Liat and Caribbean Star to unite the two
carriers.
Following talks
in Antigua on Jan. 10 and 11, Ralph Gonsalves, prime minister of
St. Vincent and the Grenadines, one of the three main shareholders
in Liat (the other two are the governments of Antigua and Barbuda
and Barbados), announced that the merged carrier will go by the
name Liat-The Star of the Caribbean; operations will start up Feb.
1, one month after the new carrier Caribbean Airlines took to the
skies.
Gonsalves
reported that Caribbean Star's fleet will be reduced by four Dash-8
300s, which will be sold as a cost-cutting measure that was part of
the merger talks.
As a result of
the merger, the new schedule will reflect changes in terms of
flight frequencies and markets served by each carrier with Star
operating routes in the northern Caribbean and Liat in the southern
Caribbean. Both Star and Liat flights will use Liat's LI designator
code.
Downsizing
employee numbers is expected at both carriers, although no figures
or effective dates were announced.
William "Skip"
Barnette will remain chairman and CEO of Caribbean Star, while Mark
Darby, Liat's CEO, will retain his position. As previously
announced, Caribbean Sun, a sister carrier to Caribbean Star will
cease all operations as of Jan. 31. Allen Stanford, chairman of
Caribbean Star, will have some equity in the new entity, according
to Barnette.
To contact reporter Gay Nagle Myers, send e-mail to [email protected].