LIAT, Caribbean Star finalise agreement

LIAT (1974) Ltd. and Caribbean Star Airlines, Ltd. on Tuesday finalised and executed the agreement for LIAT to purchase the assets of Caribbean Star Airlines. The asset purchase agreement facilitates the transfer of Caribbean Star’s assets, excluding aircraft, to LIAT, effective immediately.{{more}}

The final five aircraft currently leased by Caribbean Star will be transferred to LIAT in a separate transaction. Transfer is scheduled to coincide with the cessation of Star’s operation.

In coordination with the transfer of the aircraft, Caribbean Star will cease flying on November 15, 2007. At that time, Caribbean Star will shut down its operation, and LIAT will go forward under operating the combined fleet of Dash-8 aircraft.

“Customers should experience no interruption of their travel itineraries as a result of the transfer of aircraft and closure of Caribbean Star,” assured Skip Barnette, President and CEO of Caribbean Star Airlines. “The flight schedule will continue as published, and LIAT will operate the flights formerly flown by Caribbean Star equipment and crews.”

“We express our sincere thanks to the Caribbean Star staff – past and present – for their contributions and dedication throughout our airline’s seven-year history,” Barnette continued. LIAT’s Chief Executive Officer – Mark Darby also added his appreciation for the support and interest shown by the Caribbean Star team throughout the negotiations and conveyed his best wishes to the staff as they embark on this new phase in their careers.

The completion of the asset purchase agreement marks the end of discussions that began last October between LIAT and Caribbean Star.

“We are very pleased to have completed one of the most significant business deals in the history of the Caribbean, while preserving the heritage of an important regional icon in the process,” said Jean Holder, Chairman of LIAT. “We look forward to moving LIAT ahead as a commercial entity that will best serve the Caribbean people.”