Allen Stanford, owner of Caribbean Star. - Contributed

Caribbean Star Airlines Wednesday announced a series of cost-cutting measures including a reduction in staff under its merger with the cash-strapped regional airline, LIAT.

The airline, owned by Texan billionaire, Sir Allen Stanford, said it would trim its current fleet by four aircraft and reduce its staff of 470 by 40 per cent.

It said the changes would have taken effect February 1, the same day the airline enters into the new merger arrangement with LIAT.

Under the commercial alliance, the flight schedule of both carriers will also be merged.

Caribbean Star said that it had closed its city ticket offices in Antigua , Barbados and St. Kitts.

"The last day of employment for affected staff is January 31, 2007, though salaries will continue to be paid and benefits provided through the end of February 2007," the airline said in a statement.

- CMC

Source: Financial Gleaner, February 2, 2007