Administrators appointed in wake of Air Vanuatu collapse – but there is hope

Administrators appointed in wake of Air Vanuatu collapse – but there is hope
By Zach Havard


UPDATE 10 MAY: Ernst & Young Australia (EY Australia) have stepped in as administrators after Air Vanuatu operations entered voluntary liquidation overnight.

Representatives of EY are now in Vanuatu conducting safety and maintenance checks of the fleet, ahead of resumption of operations as soon as possible.

The appointment follows a challenging period for the global aviation industry, including labour shortages, inflation affecting input costs and a global increasing cost of credit environment. Air Vanuatu has been particularly affected by disruption of tourism activity due to cyclones.

“Air Vanuatu is critical to the people of the Republic of Vanuatu and a strategically important business to the nation,” said EY Australia’s Morgan Kelly, a partner in strategy and transactions and one of the appointed liquidators.

“Our team is working closely with management to ensure continuity of service to customers and to ensure services continue as seamlessly as possible.

“The outlook for the airline is positive, despite pressures on the broader industry, and we will be focused on securing the future of this strategically vital national carrier.”

Hundreds of passengers have been stranded across the Pacific, Australia and New Zealand after Air Vanuatu cancelled a slew of flights across the region.

Riddled with technical faults over the last year, Air Vanuatu filed for insolvency on Monday and has cancelled flights to and from Sydney, Brisbane and Auckland until at least Sunday.

The Vanuatu Daily Post reported the board had been dissolved and that administrators were appointed on 6 May.

The carrier’s website has listed services as cancelled on its ‘flight schedule changes page’, stating, “Due to extended maintenance requirements on our aircraft the following services listed below are impacted.”

“We are working with our partner carriers to minimise the disruption to our guests.”

Brisbane Airport made an update via social media.

The Vanuatu Tourism Office said it is an ‘evolving situation.’

“At this stage, we are unable to share further information but are in contact with Air Vanuatu and the Vanuatu government and will share updates as the become available,” a spokesperson said.

“We are conscious of the impact this situation has on travellers, ticket holders and the industry and on behalf of the Vanuatu tourism industry extend our apologies to anyone affected.”

Email the Travel Weekly team at traveldesk@travelweekly.com.au

air vanuatu

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