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LIAT, Caribbean Star Implement Combined Flight Schedule


ST. JOHN'S, Antigua – (February 1, 2007) – The much anticipated
commercial agreement between LIAT (1974) Ltd. and Caribbean Star
Airlines Ltd. that combines the flight operations of both carriers for
the first time officially begins today.  The commercial agreement and
its attendant new schedule, which features improved flight times and
connectivity benefiting the traveling public, are key steps toward
finalizing a proposed merger of LIAT and Caribbean Star.

Top executives representing both carriers are present at airports
across the region today greeting passengers and providing customer
assistance to facilitate the transition.  Mark Darby, CEO of LIAT,
commemorated the event, stating, "This is a significant day for both
airlines.  Teams from both LIAT and Caribbean Star have been working
feverishly over the past few weeks to ensure that a smooth transition
takes place.  We're looking forward to the benefits this alliance will
bring to our customers, staff and shareholders."

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 happy to see it finally come to fruition."

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 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, cheap fares are available."

Darby continued, "We constantly monitor fares and as promised last
week, now that the new schedule has become established and patterns of travel demand have become clear, we have refined our fare program and reintroduced lower fares across the system – you only have to look at our website, call our call center or visit your travel agent to see the great fares that we have on offer.  Be on the lookout for special promotions in the near future."
 
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