“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.”
As of today, the liquidators have taken control of the Pacific airline and will be conducting a series of fleet safety and maintenance checks before operations can resume.
EY said affected travellers will be rebooked on new flights in due course.
The Port Vila-headquartered national carrier published a list of 20 affected services, including four cancelled Auckland flights, blaming mechanical issues.
A travel advisory published by the airline last night blamed “extended maintenance requirements” for the delay. “We are working with our partner carriers to minimise the disruption to our guests.”
Due to the airline’s routes, affected passengers are mostly Australians and New Zealanders.
There had been several groundings and “non-stop issues for several months”, but he noted it was odd for no flights to be taking off at all.
With only one 737 aircraft, the airline is extremely exposed to mechanical issues, and this is not the first time faults have halted operations. However, regional links operated on Air Vanuatu turboprop planes appear also to have been grounded.
Local media have also reported on the airline’s ongoing money problems, as well as technical ones.
Yesterday Vanuatu’s Daily Post confirmed Air Vanuatu’s board of directors had been dissolved and the airline had begun the process of voluntary administration.
The board was formally dissolved after appointing an administrator on Monday, May 6. The Post reported consultancy firm Ernst & Young had been asked to address the airline’s insolvency issues, with an invitation from Prime Minister’s Office director-general Cherol Ala.
All flights through to this Sunday, May 12, have been cancelled, they said, with all further services subject to review.
Affected Air Vanuatu passengers and airline partners are advised to monitor the Vanuatu Travel Advisory website for updates.
Contacted by the New Zealand Herald about the matter, the Vanuatu Tourism Office said it was aware of reports that Air Vanuatu had entered voluntary administration.
“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 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. Virgin Australia continues to fly to Vanuatu directly between Brisbane-Port Vila.”
Earlier this year, the airline’s board of directors failed in a court appeal over unresolved financial obligations. The airline had been embroiled in a long-running court case with the owners of its aircraft since 2009 over leasing terms.
In February this year, the company was ordered to pay aircraft leasing company Isleno damages in the order of VT$150 million ($2m).
Last year, international services were plagued by unreliability on the airline’s sole 737-800, the eight-year-old aircraft numbered YJ-AV8.
The airline has been contacted by the Herald for comment.
