Merged Caribbean Star, LIAT promises better service
Guyana Chronicle
February 9, 2007
CARIBBEAN Star and LIAT, which began joint commercial operations on February 1, are looking to turn over a profit in the first year of their merger, a top official said yesterday.
Mr. Mark Darby, Chief Executive Officer of LIAT, owned by the governments of Barbados, Antigua and St. Vincent and Grenadines, said the merger with Caribbean Star, owned by American tycoon Standford Allen, would reverse the dying fortunes of the airlines which competed in a ruthless price war that sunk each other to “considerable” losses.
He said it would result in a new larger, better and more capable airline to serve the Caribbean effectively. Darby said the airlines suffered a US$35 loss on each ticket they sold.
Caribbean Star sold four of its aircraft on January 15, 2007 and reduced its flight operations to better correspond with the smaller fleet size.
According to Darby, the two airlines are currently operating with a total aircraft fleet of 18, with a further three aircraft in reserve.
At a press conference at the Roraima Residence Inn, Georgetown, he said LIAT, which had entered an agreement with BWIA (now Caribbean Airlines) and Air Jamaica to traffic Teams, Officials, Media and Sponsors (TOMS) would still be able to meet its commitment for Cricket World Cup 2007.
In fact, he said with the commercial merger, the airline would now be in a better position to meet obligations for the mega cricket tournament.
Stakeholders in both airlines met at Christmas last year and decided on the merger.
Darby said the airlines could not afford to continue making losses and thus the merger was rushed through. He said critically too, LIAT wanted to make sure that any schedule changes would be made well in advance of CWC.
Currently, the two airlines are reaching 22 destinations, and all flights would be marketed under the LIAT brand. The joint operations would be re-branded as “LIAT – the new Star of the Caribbean”.
Darby noted that the airlines would soon be re-launching special packages including the Dream Holidays/Star Holidays package which will have offers combining Guyana’s eco-resorts.
He said the merger would mean more direct flights, hence fewer stops along the connecting route.
Darby hailed the merger of LIAT and Caribbean Star as a major step forward in Caribbean air transport.