FOR IMMEDIATE RELEASE DATE: August 14, 2002 RE: SUN AIRWAYS/St. Croix Airline Hub Project Contact: Bruce Morgan Casner (202)547-5100 Chairman, FAX: (202)547-6570 Caribbean Airline Acquisition Group LLC e-mail: chairman@sunairways.com NEW AIRLINE SERVICE TO THE V.I. IS A STEP CLOSER WASHINGTON, DC. A letter from Governor Charles Turnbull reaffirming Government support of the Sun Airways/St. Croix Hub Project was received over the weekend by the Chairman of the group responsible for the project. In the letter, Governor Turnbull confirms that the Territorial Government, through the Economic Development Authority, will issue a guarantee of up to ten million dollars for the project financing necessary to establish an airline hub at the Henry E. Rohlson Airport on St. Croix. Legislation creating an Economic Development Fund to be administered by the EDA was introduced last fall by Senator David Jones (St. Croix). It was passed by the Legislature in November and signed by the Governor in December. The guarantee, whose purpose will be to assist in the financing of an airline hub on St. Croix, will be available when the Fund is organized. Governor Turnbull notes "…enthusiastic support for this venture, from all segments of the Government." He also praises the "…comprehensive program for airline services as well as the vertically integrated support and infrastructure plan to compliment it…" Bruce Morgan Casner, Chairman of the Caribbean Airline Acquisition Group LLC, who will serve as Chairman and CEO of Sun Airways, explained the purpose of the letter. "What we refer to as the 'Letter of Intent' does several things. It officially confirms the existence of the Economic Development Fund and the guarantee intended to assist in the development of an airline hub in St. Croix. It is validation by the Government of the Project's credibility, and it provides a means by which potential investors can be persuaded to begin their due-diligence, which will lead to funding being made available to begin the project." Due-diligence is the thorough investigation of each and every aspect of a project by potential investors. It is an expensive and time-consuming process, which can take up to six months or longer. "Since it is in everyone's best interest to streamline things as much as possible," Casner said, "much precious time can be saved by getting started now, rather than waiting for the EDF to be organized and the guarantee issued, which could take several more months." Once the start-up capital is received, it will take about six months to begin flying. This is due to the time necessary to comply with Federal Regulations governing new airlines and to handle the other details necessary to start operations. The Sun Airways program is expected to bring with it much-needed economic development. Jet service to cities in the Mainland and regional flights from its St. Croix Hub will substantially increase passenger lift to the Territory and will lead to investment in new hotels and other tourist-related infrastructure. Staffing requirements for its airline operation, the planned jet fuel depot, maintenance facility and air cargo distribution center on St. Croix will create many new employment opportunities. A proposed Educational Center will provide training to citizens of the Territory for such high paying jobs as FAA Certified aircraft mechanics, pilots, flight attendants and managers. Casner expressed his appreciation of the Government's ongoing support of the project. "Governor Turnbull has supported us since June of 1999, when we met with him for the first time to discuss the project, and we thank him for his leadership in promoting a business-friendly environment in the VI," he said. "We are also grateful to Senator David Jones and the Legislature for understanding the benefits that the Sun Airways/St. Croix Hub Project will bring to the Territory and passing the legislation to make it possible. We will now move with all deliberate speed to meet the challenge of putting our financing together so we can begin serving the people of the Virgin Islands with safe, comfortable and reliable airline services at the earliest possible time." _________________________________________________________________ Chat with friends online, try MSN Messenger: http://messenger.msn.com