The state airline Air Vanuatu announced Thursday that it had canceled international flights for four days and is trying to avoid bankruptcy.
He said that the international flights were canceled until sunday and that the Flights after that day were “under review.”
“The Vanuatu government is now considering placing Air Vanuatu under voluntary administration,” a statement said, referring to the local equivalent of a US Chapter 11 bankruptcy.
“The international firm Ernst & Young has been appointed to assist the Government of Vanuatu in reviewing available options and making recommendations,” the statement added.
“Representatives from Ernst & Young arrived in Port Vila today to begin an assessment of Air Vanuatu’s finances and are assisted by the Government of Vanuatu and the Air Vanuatu team.”
Thousands of travelers have been stranded by cancellations.
The airline’s travel advisories section on its website cites “extended maintenance requirements” on their planes as the reason for the flight interruptions, the media commented Aerotime.
Brisbane Airport (BNE) and Sydney Kingsford Smith Airport (SYD) have posted flight cancellation notices on their respective social media platforms.
Tourism is a key driver of Vanuatu’s small economy, according to the Australia-Pacific Islands Business Council, and represents about a third of the country’s economy.
The airline said it had canceled or put under review all future international flights serving Australia, New Zealand, Fiji, Papua New Guinea, New Caledonia and the Solomon Islands.
The airline said it had been operating in a “challenging environment”.
Two of its planes, a Boeing 737 and an Airbus A320, are grounded and require engineering work at a time of limited international spare parts supply, the airline said in an online update.
Vanuatu’s tourism office said it was in contact with the airline and the government.
“We are aware of the impact this situation has on travellers, ticket holders and the industry and, on behalf of Vanuatu’s tourism industry, We extend our apologies to all those affected.”he said in a statement.
The media commented that the news of the cancellation of flights and the dissolution of the board of directors of Air Vanuatu comes less than two weeks after Australian low-cost airline Bonza entered voluntary administration on April 30, 2024 and lessor AIP Capital will recover its planes.
(with information from AP and AFP)
