Tourists found themselves stranded as Vanuatu’s national carrier, Air Vanuatu, entered voluntary liquidation, leading to the cancellation of flights to Australia and New Zealand.
The decision came after representatives from accounting firm EY assessed the airline’s financials in Port Vila, prompting the government’s move to liquidate the airline.
Extended maintenance requirements for its aircraft were cited as the reason for the cancellation of flights until Sunday. Liquidator EY aims to resume normal operations after safety and maintenance checks.
All scheduled international flights by Air Vanuatu have been cancelled, affecting future flights. Efforts are underway to rebook affected travellers once operations resume.
Operating vital routes between Pacific islands and Australia, Air Vanuatu’s fleet consists of only four planes, crucial for tourism-dependent islands.
Meanwhile, a Boeing 737 in Air Vanuatu livery has remained parked at Melbourne’s Tullamarine airport for months.
Virgin Australia, the only other carrier with scheduled passenger flights between Australia and Port Vila, has increased its capacity in response to the grounding of Air Vanuatu. It will now operate five flights per week between Brisbane and Port Vila, with plans to expand services between east coast Australian cities and Port Vila.
EY’s appointment follows challenges in the global aviation industry, including labour shortages and inflation affecting costs. Air Vanuatu, owned by the government, has faced additional pressure due to cyclone-related disruptions to tourism.
Despite the challenges, EY remains optimistic about Air Vanuatu’s future and aims to secure its role as a vital national carrier.
While voluntary liquidation typically signals closure, a potential relaunch is possible, considering Air Vanuatu’s government ownership and strategic importance to the nation.
The first creditors’ meeting will be convened soon, with the current management team remaining in place.
Qantas Airways, a code share partner of Air Vanuatu, is supporting affected customers with alternative arrangements.