Air Vanuatu has gone into voluntary administration, with its liquidator saying it expects the carrier to resume normal operations “as soon as possible”.
In a statement, Air Vanuatu’s liquidator Ernst & Young Australia (EY) said it took control of the business today (10 May), with the carrier’s fleet “grounded to allow the liquidators to conduct safety and maintenance checks before the resumption of normal operations”.
“The liquidators intend to resume normal trading as soon as possible, while considering all opportunities to place the carrier on a stronger footing,” it said.
“Affected travellers will be informed of this disruption and rebooked on flights as soon as operations resume.”
The appointment comes after tough times for the aviation industry, EY added, with staff shortages, rising overheads and a tougher credit environment for airlines, while cyclones have also impacted travel to Vanuatu.
According to EY, the current Air Vanuatu management team will stay on board and collaborate closely with the liquidator.
EY Strategy & Transactions Partner Morgan Kelly said, “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”.
“Air Vanuatu is critical to the people of the Republic of Vanuatu and a strategically important business to the nation,” he stated.
“Our team is working closely with management to ensure continuity of service to customers and to ensure services continue as seamlessly as possible.
“EY Australia has a significant and successful track record working with aviation operators and airlines globally, utilising our highly experienced restructuring team.”
An EY spokesperson told Karryon that “customers and travellers are always the highest priority… because we want to get people home”.
“The primary focus from EY’s perspective is obviously to work with the existing management team, to ensure that they can get the airline into a position where it’s in a more secure footing to be able to return to normal and to resume operations,” they said.
“When that happens, how that happens… it’s all still being worked through.”
On its website, the airline states, “If you are due to fly with Air Vanuatu, please DO NOT TRAVEL TO THE AIRPORT unless you have arranged an alternative flight with another airline”.
“Please note that Air Vanuatu is unfortunately not able to arrange alternative flights for passengers at this stage,” it says.
“If you have a booking sold by another airline that includes travel on an Air Vanuatu flight, please contact the relevant airline or travel agent to confirm if there is any impact to your travel plans.”
“Customers are also advised to monitor the Civil Aviation Authority Vanuatu website for further information (https://caav.vu/). If you require any further information or assistance, please contact the Liquidators by email at AirVanuatu@au.ey.com.”
Other airlines yet to react
Virgin Australia, which is the only other carrier to operate direct flights between Australia and Vanuatu, told Karryon it is looking at the situation, but has not yet committed to extra capacity to the country.
Solomon Airlines, which operates flights between Brisbane and Vanuatu on behalf of Air Vanuatu, is also yet to comment.
Fiji Airways, which has assisted Air Vanuatu in the past, is expected to make a statement soon.
Meanwhile, the Australian Department of Foreign Affairs and Trade (DFAT) has told anyone affected by the flight cancellations “to contact the airline, your travel agent or insurance company about rescheduling flights”.
The Australian High Commission in capital Port Vila has also told Australians (and Canadians) in Vanuatu to call +678 22777 or email consular.portvila@dfat.gov.au if they require consular assistance.
Working with travel trade
In an interview with the ABC, Vanuatu Tourism Office CEO Adela Issachar Aru said VTO is already working with the travel industry and its travel trade partners to help those stranded in the country.
“We sympathise with travellers who are currently stranded… we’re currently working with travel agents and also with the tourism industry here – just working with all passengers not just in Vanuatu but also from abroad who are returning or travelling into the destination,” she remarked.
“We understand that it’s not an easy time for the destination.”
According to Issachar Aru, tourism accounts for some 40 per cent of Vanuatu’s GDP.
“We’re working on solutions to create experiences for them while they’re in country,” she said.
“Virgin Australia is still flying into Vanuatu, but we definitely look forward to the updated flight schedules from Air Vanuatu.”
“We’re organising wonderful tours. We definitely want anyone here… to have a wonderful experience here.”
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.
