LIAT, Caribbean Star merger running a bit behind

Although regional carriers LIAT and Caribbean Star missed their self-imposed June 15 deadline for merger completion, both carriers are confident that the deal will be finalized by the end of the month –three days from now- or shortly thereafter, at which time the two carriers are expected to operate as a single airline.

Mark Darby, LIAT’s CEO, said that the delay is centered upon legal documentation, but in the meantime, behind the scenes “we are still moving ahead.”

The merged entity of the two airlines would only be 40 percent larger than the original LIAT, according to Darby. Within that context, he said that operations would have to be streamlined and job cuts would take place.

The phased approach is necessary because Caribbean Star will continue to operate separately from LIAT until all Caribbean Stair aircraft have been transferred to LIAT and all regulatory processes have been completed, Darby said.

In fact, Caribbean Star already has initiated a phased staff separation process that includes the scrapping of 56 positions in phase one, which will take effect at the end of July, one month after employees are given notice.

However, some of Caribbean Star’s employees are expected to take up positions with LIAT, which is posting available positions and both carriers are working to promote the positions to Caribbean Star staff. The merged carrier will go by the name LIAT, the Star of the Caribbean; LIAT’s current LI designator will remain in use by the merged carrier.

The ownership of the new airline will remain as agreed upon in March: 65 percent to Caribbean shareholder governments (Antigua and Barbuda, Barbados and St. Vincent and the Grenadines) and other LIAT shareholders, and 35 percent to the Antigua-based Stanford Financial, which owns Caribbean Star.