Caribbean Sun Airlines Shuts Down

Caribbean Sun announced it is shutting down owing to the direct flights major carriers have from the U.S. mainland that bypass San Juan. President and CEO Skip Barnett, who last year expected to launch a major expansion plan, announced a two-phase shutdown of all flight operations. Another factor in the decision to shutdown Caribbean Sun is the recent re-certification of its sister carrier, Caribbean Star Airlines, under new Civil Aviation Regulations passed in Antigua and Barbuda by the Eastern Caribbean Civil Aviation Authority (ECCAA). In March 2006, the ECCAA was upgraded to Category One status by the U.S. Federal Aviation Administration (FAA). In October 2006, Caribbean Star was re-certified under the new regulations, enabling the carrier to consider broader expansion opportunities, including possible new service to U.S. destinations. "When Caribbean Star was launched in 2000 it could not serve San Juan and other U.S. destinations, which of course hindered growth," said Barnette. "Caribbean Sun was later launched as a completely separate U.S.-based airline to complement the Caribbean Star operation with its ability to hub out of San Juan and attract what was then a stronger market for connecting passengers. Now that Caribbean Star has the same advantages, we can realize some efficiencies and better focus our efforts." For a complete report see the January 15 issue of Regional Aviation News.