LIAT, Caribbean Star Implement Combined Flight Schedule

Schedule includes improved timing, connectivity to benefit regional air travellers

ST. JOHN’S, Antigua – (January 31, 2007) - Commencing February 1, 2007, LIAT (1974) Ltd and Caribbean Star Airlines, Ltd will officially commence a much anticipated commercial agreement that facilitates a combined flight schedule and rationalization of air travel services across the region. Mark Darby, CEO of LIAT said, “This will be a significant day for both airlines. Teams from both LIAT and Caribbean Star have been working feverishly ensure that a smooth transition takes place as we begin operating a joint flight schedule. We look forward to the benefits this alliance will bring to our customers and airlines.”

The commercial agreement of LIAT and Caribbean Star means the flights of both airlines will be marketed as LIAT and identified by the “LI” airline designator although some planes will be clearly branded as Caribbean Star Airlines. Both LIAT and Caribbean Star will continue to operate as separate carriers under their own management until the proposed merger of the airlines is implemented.

William “Skip” Barnette, President and CEO of Caribbean Star Airlines noted, “Clearly, we believe that this combined schedule is the best thing for our customers as it will allow us to provide a broader range of services; better timing and improved connections. A lot of thought and planning has gone into this new schedule over the past few months and we are excited to see it being implemented.”

Darby and Barnette jointly added, “We understand that there have been some concerns expressed about our fare levels – which we believe are unfounded. The fare structure in use to today is the same one that we have been using since early December. We are approaching a very busy time with Cricket World Cup and Easter and the limited seats offered at the lower prices are quickly booked. If our customers can be flexible with their date and time of travel, and book further in advance, cheaper fares are available.”

Darby continued, “We constantly monitor fares and once the new schedule has become established and patterns of travel demand become clear, we then will be in a position to refine our fare program. Be on the lookout for special promotions in the near future.”

For more information on Caribbean Star Airlines Ltd., please visit www.flycaribbeanstar.com.

For more information on LIAT (1974) Ltd., please visit www.liatairline.com.