Paul Lewis/WASHINGTON DC
The start-up of services by Caribbean Star has prompted the Government of Antigua and Barbuda to back calls for the new carrier to merge with the financially struggling incumbent LIAT to avoid potentially ruinous competition.
Antigua and Barbuda prime minister, Lester Bird, has said he would support a merger between the two airlines. This echoes comments made by LIAT chairman Wilbur Harrigan that if the new carrier was interested in making an investment that shareholders should consider it.
Caribbean Star launched its services on 18 October and has quickly expanded. The carrier now boasts three leased Bombardier Dash 8-100s and one -300, and claims to have signed a letter of intent to co-operate with Florida-based Gulfstream and to be "speaking to British Airways, Virgin and Air Canada".
The airline has also "made overtures to LIAT and BWIA (West Indies Airways)," says Edward Gilkes, Caribbean Star customer services director. The Antigua-based carrier's network includes flights to Barbados, Dominica, Grenada, St Vincent and Trinidad, "We're wanting to go into other areas," adds Gilkes.
In an effort to strengthen its network, LIAT has reached agreement with St Maartens-based Winair and newly formed Air Caraibes of the Antilles to launch the Carib Sky Alliance from April next year. Local associate carriers will include Trans-Island Airline, Carib Aviation and Tyden Air.
The intra-Caribbean alliance will link 46 destinations and bring together hubs in Antigua, Barbados, Guadaloupe, Martinique, St Lucia and St Maartens. They will serve as gateways to North America and Europe. LIAT in addition is trying to hammer out a pact with Trinidad-based BWIA, which is a 29% shareholder.
Calls for merger come with yet another regional carrier facing bankruptcy. Air Caribbean has just folded in the face of strong competition from BWIA, after founder Leslie Lucky Samaroo failed to secure fresh financial backing. Matters appear to have come toa head after the carrier failed to pay TACA Airlines for the hush-kitting of one of its Boeing 737s.
Source: Flight International
