Air Vanuatu goes into liquidation and thousands of passengers are stranded | Aviation news


Consultants overseeing the process say they hope to get all four of the airline's planes back in the air as soon as possible.

Air Vanuatu, the national airline of the Pacific island nation of Vanuatu, went into liquidation a day after canceling all flights leaving thousands of travelers stranded.

More than 20 flights to and from the Australian cities of Sydney and Brisbane, as well as the New Zealand city of Auckland, have been cancelled, with the airline blaming the “extensive maintenance requirements” of its planes.

EY, the international consultants appointed by the government to oversee the liquidation, assured travelers stranded in Vanuatu that they expected the company's small fleet of planes to fly again as soon as possible.

They said they were working with airline management to resume normal operations after conducting safety and maintenance checks, but were unable to provide a date for when that might be.

Air Vanuatu operates four aircraft between the country's islands, which rely heavily on tourism, and to Australia, New Zealand and other South Pacific island nations.

EY said his appointment followed a challenging period for the global aviation industry, including labor shortages, as well as rising operating costs and disruptions caused by extreme weather. Tourism accounts for about a third of the country's economy, according to the Pacific Islands Business Council of Australia.

The outlook for the airline is positive, despite pressures on the wider industry, and Air Vanuatu is a “strategically vital national airline”, EY said in a statement.

The first meeting of creditors will be scheduled shortly, while the current management team will remain in place, he added.

Australian airline Qantas Airways said it was supporting its codeshare passengers who booked Air Vanuatu flights, while the Vanuatu Tourism Board said talks were underway with Virgin Australia and Fiji Airways about the possibility of bringing stranded passengers to their destinations.

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