Continuing a year-long series of upgrades designed to improve the quality of the airline's service, Caribbean Star took delivery of its third Bombardier (BBD) Q300. It will enter service pending certification from the Eastern Caribbean Civil Aviation Authority (ECCAA) and is part of a four-aircraft order. At the same time, the airline and its sister airline - Caribbean Sun Airlines - imposed a series of cost-cutting measures that will help it optimize future growth.

"We're taking a couple of small steps backward to make it easier for us to take a giant leap forward in the future," said President Skip Barnette, adding the decisions were made to gain profitability and long-term service in the Caribbean. "We've strengthened our operations, giving us a more solid foundation from which we can grow in concert with our regional competitors, instead of against them."

Caribbean Star, the Antigua-based airline, will not renew the leases on its only two Dash 8-100s, removing them from the fleet in September and October. The aircraft will be replaced with the Q300s, acquired by cash purchases and wholly owned by Caribbean Star, bringing its fleet to 11 aircraft, including the four Q300s and seven Dash 8-300s.

The airline also joined with Air Jamaica, BWIA and Liat to win the Cricket World Cup contract and recently launched a special prorate agreement with Air Jamaica. Caribbean Star also hopes to hammer out a separate agreement with BWIA or its successor, Caribbean Airlines.

Sister airline Caribbean Sun, based in Ft. Lauderdale, is turning back three de Havilland Dash 8-100s as the leases expire. They will be removed this month, in October and December. The airline previously eliminated two other Dash 8-100s.

As a result of the fleet reduction, Caribbean Sun is suspending service to St. Eustatius and flights between St. Kitts and San Juan. It is also reducing frequency to St. Maarten and Tortola, effective October 1. It expects to discontinue service between Tortola and San Juan and reduce flights on the San Juan-Antigua-Port of Spain route.