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LIAT Board gives green light to merger discussions with Caribbean Star
ANTIGUA, St. John's, October 5, 2006 - The Board of Directors of LIAT (1974) Ltd. met today at its Commercial Office in Barbados. In addition to which routine governance, an agenda item was tabled to consider whether LIAT should enter into formal discussions and negotiations with Caribbean Star, aimed at reaching an agreement to merge the two airlines.
A resolution was unanimously passed that the executive management of the Company be authorised to enter into formal communication and negotiations with Caribbean Star with a view of exploring a possible merger between the two companies. Once the negotiations between the two companies has taken place, an extraordinary Board meeting will be held where the executive management will report on its findings, and enable the Board to take such decisions as are appropriate at that time.
The negotiations will take place within the context of terms of reference set by the LIAT Board. Dr. Jean Holder, Chairman of LIAT said "The Board believes that it is in the interest of the shareholders and the people of the Caribbean, that formal discussions and negotiations with Caribbean Star proceed as swiftly as possible, in order that the full potential of any merger or amalgamation of the two airlines can be assessed and decisions taken."
Mark Darby, CEO said that "Our initial discussions with Caribbean Star have indicated that the potential exists to create a commercially viable and vibrant new airline that would provide our customers with a superior service - improved schedule and customer service at realistic fares. We need to move quickly on this, in order that we can remove any uncertainty for our joint staff and present our plans for the future."
In the near future, there will be a joint statement on this matter by the Chairmen of both airlines; Dr. The Honourable Jean Holder and Mr. Alan Stanford. END
Note to the editors:
LIAT and Caribbean Star are the leading Caribbean airlines. Between them they operate 30 aircraft across over 19 destinations comprising in excess of 186 flights per day.
LIAT is owned by regional shareholders, with the major shareholders being the governments of Barbados, Antigua, St. Vincent and the Grenadines and St. Lucia.