Stranded Kiwi tourists pay thousands for Vanuatu charter fares after airline goes bust

Air Vanuatu's regional services have been grounded sine the airline's liquidation on Thursday. Photo / Yannis Tillard; Tourism in Vanuatu, Facebook

Following the grounding of Vanuatu’s national airline on Thursday, New Zealanders say they had been left stranded by airlines, insurers and travel agents. Some are asking how travel agents had been able to sell them tickets when even Air Vanuatu crew did not know if their employers were still operating.

Travellers were alarmed to learn that, on arriving to the island, some of the routes they were ticketed on had not been flying for weeks.

Stranded Kiwis charter flights to Australia from Vanuatu

While the capital of Port Vila still had limited options for flights on other carriers, tourists and locals on other islands were stranded with the grounding of the national airline.

The island of Espiritu Santo was particularly problematic, with no other travel options apart from a weekly 24-hour ferry to Port Vila, leaving tourists with no obvious way home.

Ninety-four travellers they were able to fly home on a flight arranged by a stranded travel agency director.

Kiwi traveller Gavin and his wife said they paid almost $1800 each for a charter flight to Australia to get home.

“We were airlifted out last night on an Air Solomons charter flight. We now have to get from Brisbane to Christchurch,” he said.

But there were plenty of other travellers for whom this pricey route was not an option.

Gavin was not sure if his travel insurance would cover the cost of getting home after his original flights were cancelled.

“Insurance has advised they won’t cover most people due to policy wording, that if an airline goes into financial collapse then insurance is voided.”

Michelle Billett, managing director of Queensland travel agency DiverSeaTy, was able to negotiate a chartered A320 flight from Solomon Airlines after being stranded at the Turtle Bay Lodge on Santo.

“We landed in Brisbane last night,” said the veteran travel industry worker, formerly of Virgin Australia.

A Solomon Airlines A320 was chartered for stranded Air Vanuatu passengers on Espiritu Santo. Photo / Supplied

With experience arranging charters for business travel and sports clients, she said she was able to negotiate prices down to AU$1620 ($1780) a passenger but knew there were still those for whom this was too expensive.

“Charter flights aren’t cheap,” she told the Herald. As Air Vanuatu had gone into liquidation, the process had involved arranging new landing rights for Solomon Airlines and ABS security clearance to reenter Australia.

As well as 25 clients from a dive group she was leading, the remainder of the flight was booked by mostly Australians and New Zealanders, as well as US and Norwegian travellers. Despite contacting all resorts on the island and industry networks the A320 departed less than half full on Sunday night.

Billett said communication had been awful during the pause of Air Vanuatu. The Australian Department of Foreign Affairs and Trade only got in contact to finalise details of the charter flight, rather than to share updates.

Air Vanuatu told affected passengers an update was coming on 2pm on Thursday, following the suspension. An update that still hasn’t come.

“The collapse was unexpected for the industry and anyone flying into Vanuatu,” Billet said, but her next big concern was whether travel insurance covered flights in the case of insolvency.

“Whether Travel insurance will cover any of these flights is the $64 million dollar question on everyone’s lips.”

It’s not only travellers but the entire hospitality industry that is reeling from the sudden collapse o the airline.

Michelle Billett was leading a tour to Vanuatu's Espiritu Santo Island.

Michelle Billett's sister Kathryn and Kiwi tourist Catherine Taylor, prepare to depart on a Solomon Airlines charter flight from Vanuatu. Photo / Michelle Billett

Travel Agents respond to refund requests after allegedly booking non-existent Vanuatu flights

Airfares on other carriers still flying out of Port Vila have increased three to four times, and are still in short supply.

Among the tourists travelling was a retired senior lecturer for AUT’s School of Hospitality and Tourism. Lindsay Neill, 67, from Auckland, arrived on May 2 with his partner, expecting to fly onward to Espiritu Santo after hearing that this hadn’t been running since April 28.

He described the rush for flights back to New Zealand as a “lolly scramble”. Older guests who were travelling independently had little help to find connections back to New Zealand. Eventually paying above the odds for one.

“As we flew out I thought ‘We’re never coming back,’” Neill told the Herald. “Not because of the islands or the people, but because we don’t know if we’ll get home.”

By the time Neill and his partner had paid for his tickets, the routes were already not operating.

He wanted to know to what extent travel agents’ duty of care extended to their customers, if they were providing a service that fails to materialise.

“Why are travel agents taking travel bookings with an airline in trouble?”

Travel Agents’ Association of New Zealand president Brent Thomas, said the insolvency was a “sad and difficult” time for the industry.

“The entire travel agency industry has been working hard over the past few days alongside any affected travellers to help them identify their options as information is made available from the liquidators and other airlines.”

While as service provider travel agents had a duty of care to customers, in most cases a direct refund from agencies was not possible. Airline industry standards mean that fares must be paid to carriers when tickets are issued.

“Given this, travel agencies do not hold the funds paid by a traveller for future travel bookings with an airline,” he said.

Thomas said that associated agencies were working with affected travellers in Vanuatu and those still scheduled to travel.

'Lolly scramble' Vanuatu locals and tourists have been scrambling to get flights off remote islands. Photo / Unity Airlines

Locals and expatriates in more remote parts of the islands said the situation was dire.

Kava farmer and Kiwi expat Tatum Jose in Espiritu Santo said air connections had been gradually getting worse, but now outer islands had few options.

“It’s very frustrating for locals and tourists alike, not knowing when we’ll be able to get around. If you live in Port Vila it’s doable as other airlines fly into Vila every week, but for all the other islands including Santo, where I live, we’re basically stuck.”

A statement to the Herald for the airline’s appointed Liquidator, E&Y consultants, said they were working with existing customers while continuing “to work through the process required for normal operations to resume”.

“The Liquidator is in direct contact with affected passengers and assisting with options for travel. It has also been working with other airlines in the region, such as Virgin Australia and Fiji Airways, who have opened more options for travellers in Vanuatu during this process.”

Mfat’s advice to New Zealand travellers still in Vanuatu

New Zealand’s Ministry of Foreign Affairs and Trade said it was aware of 53 Kiwis registered as still being in the Islands since the national airline was placed into administration.

However, the number of registered travellers via the SafeTravel website is constantly changing.

“Our High Commission in Port Villa has been providing advice to a small number of New Zealanders currently in Vanuatu,” a ministry spokesperson said.

Those in contact with the ministry now all had travel arrangements in place to leave Vanuatu on other carriers.

“If your travel has been impacted you should reach out to your airline and/or your travel agent directly to seek information about updated flight schedules. We recommend you also contact your travel insurance provider to see what insurance cover may apply in these circumstances.”

Travellers with tickets for Air Vanuatu flights are advised to check for updates via the airline’s Travel Updates website site:

https://www.airvanuatu.com/travel-advisory/air-vanuatu-operations-limited-in-liquidation