Port Vila, Vanuatu – August 7, 2024
Air Vanuatu has begun limited flight operations as part of its strategic effort to exit liquidation by the end of August 2024. The national carrier, which ceased operations in early May 2024 due to significant financial distress, has started scheduled charter flights, marking a crucial step toward reinstating full domestic services.
According to Morgan Kelly, the Liquidator and Partner in Strategy & Transactions at Ernst & Young, the resumption of flights is pivotal for the airline’s restructuring efforts. “Our focus remains on recommencing services in a safe and reliable manner,” Kelly stated. This development is essential for the connectivity of Vanuatu’s population, spread across more than 60 islands (eGlobal Travel Media) (ch-aviation).
The airline aims to exit administration by August 31, 2024, pending court approval of a creditors’ compromise. Vanuatu’s Minister of Finance and Economic Management, John Salong, confirmed that the government and Air Vanuatu’s administrators are working diligently toward this goal. “It has been challenging to set a specific deadline due to uncertainties, but now that we are addressing these issues, we are aiming for 31 August,” Salong told Island Business (ch-aviation).
Despite the progress, significant challenges remain. The airline’s only jet, a Boeing 737-800, has been repossessed, and three out of the remaining five turboprops require overhauls before they can be operational again. The financial restructuring involves reducing the airline’s debt of approximately USD 73.5 million and finalizing a creditors’ compromise (ch-aviation).
As Air Vanuatu gradually resumes operations, it underscores the importance of the airline to Vanuatu’s national infrastructure and economic stability. The coordinated efforts of the liquidators, the government, and the Civil Aviation Authority aim to ensure a smooth transition back to full operational capacity, reinstating the airline’s critical role in the country’s transportation network (eGlobal Travel Media).
