Troublesome airlines had previously canceled flights to Australia and New Zealand, citing ‘maintenance’ needs, as reported by The Guardian.
Vanuatu’s national carrier, Air Vanuatu, has entered voluntary liquidation following the cancellation of flights to Australia and New Zealand, resulting in stranded tourists.
The decision was made by Vanuatu’s government after representatives from accounting firm EY assessed the airline’s financial situation upon arriving in Port Vila.
Air Vanuatu attributed the flight cancellations to extended maintenance requirements for its aircraft. Liquidator EY aims to resume normal operations after conducting safety and maintenance checks.
The carrier operates four planes connecting Vanuatu’s islands with Australia, New Zealand, and other South Pacific destinations.
Virgin Australia, the only other airline operating scheduled passenger flights between Australia and Port Vila, has increased its capacity in response to Air Vanuatu’s grounding.
EY cited challenges faced by the global aviation industry, including labor shortages and inflation, impacting Air Vanuatu. Despite these challenges, EY expressed optimism about securing the future of the airline, which is vital for Vanuatu.
A potential relaunch is possible, given Air Vanuatu’s government ownership and the absence of competing shareholders. Liquidation could facilitate restructuring operations and renegotiating existing financing and leasing arrangements.
Qantas Airways, an Australian carrier, is assisting its code-share customers affected by the Air Vanuatu flight cancellations.
