The Vanuatu Government is considering placing its national carrier Air Vanuatu in voluntary administration, with the airline cancelling all Australian flights until at least Sunday (12 May 2024), the airline says.
An Air Vanuatu statement confirms that accounting firm Ernst & Young will assist the government in “reviewing available options and put forward recommendations”.
“Ernst & Young representatives arrived in Port Vila today to begin an assessment of Air Vanuatu’s financials and are being assisted by the Vanuatu Government and the Air Vanuatu team,” the carrier states.
“Air Vanuatu has confirmed all international flights from Thursday 9 May 2024 through Sunday 12 May 2024 inclusive, are cancelled. All future flights after Sunday 12 May 2024 are currently under review.”
The airline says it will continually update the Vanuatu Travel Advisory page for passengers and the industry here.
“Whilst the assessment is ongoing, further commentary and updates will be provided by Air Vanuatu, until an outcome result has been finalised,” it adds.
In a statement, Brisbane Airport warned passengers due to fly with the airline to not travel to the airport.
“They should contact Air Vanuatu Customer Support and stay alert for updates,” the Queensland hub said.
“The airline operates services between Brisbane and Port Vila, as well as Espiritu Santo.” It also flies to Sydney.
Meanwhile, Virgin Australia continues to fly to Vanuatu between Brisbane and Port Vila.
The Vanuatu Tourism Office (VTO) says in a statement that it will also share updates as they become available.
“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,” it says.
“This is an evolving situation and we will continue to post updates to www.vanuatu.travel.”
According to the Vanuatu Daily Post, Air Vanuatu Chairman Alain Lew said that the board has been dissolved, having been replaced by an administrator on 6 May.
Concerns about the carrier’s financial health have been raised, including allegations of bankruptcy and management issues, the Post reports.
The news comes a month after Vanuatu’s Finance Minister, John Salong, told the ABC Air Vanuatu would not soon be liquidated.
Last year, hundreds of Australian travellers were left stranded in Vanuatu after the carrier cancelled at least 26 flights between Port Vila and Australia and New Zealand.
