iscover
Air Vanuatu will exit voluntary liquidation, with the carrier to be returned to the control of the Vanuatu government.
Under a Deed of Compromise approved by the country’s Supreme Court, all shares in Air Vanuatu will be turned over to the government-owned company AV3 and the airline handed back to its management.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
Liquidator EY Australia in June confirmed it had received non-binding offers for the Vanuatuan flag carrier, which went into voluntary liquidation in May owing at least $99 million; however, no sale eventuated.
“We’re very pleased the Supreme Court of Vanuatu ratified the Deed of Compromise. The implementation of the Deed of Compromise maximises the return to creditors and presents an opportunity for the Air Vanuatu business to continue, saving jobs and providing vital aviation services for Vanuatu,” liquidator Morgan Kelly said.
“We would like to thank the Vanuatu Government and the Civil Aviation Authority Vanuatu for their ongoing support during this process. Their collaboration and assistance have been instrumental in reaching this positive outcome.”
Under EY’s management, the airline has reorganised its workforce and recapitalised, axing 170 jobs at the end of May.
Air Vanuatu has also resumed some domestic services, including with its ATR 72-600; international flights are yet to return, with the airline’s only jet aircraft – a Boeing 737-800 – having been grounded since at least January.
Both Qantas Group and Virgin Australia have moved in on Vanuatu since the flag carrier entered voluntary liquidation.
The International Air Services Commission (IASC) in June awarded the Flying Kangaroo 1,798 seats of capacity per week between Australia and Vanuatu, which Qantas plans to fly with a mixture of its own 737-800s, wet-leased Alliance E190s, and Jetstar’s A321neos; its first flight touched down at Port Vila last month.
This puts Qantas in direct competition with Virgin Australia, which has had the route largely to itself since the collapse of Air Vanuatu, and increased its existing flights from Brisbane to Port Vila in June. Solomon Airlines began operating services from Brisbane to Santo, returning via Port Vila, in July.
Before its collapse, Air Vanuatu code-shared with Qantas on daily flights from Sydney to Port Vila, four flights per week from Brisbane to Port Vila, and three flights per week from Melbourne to Port Vila, as well as weekly services from Brisbane to Santo operated for Air Vanuatu by Solomon Airlines.
[email protected]
says:So, in real terms we have no sale of “Air Van” and maybe in a couple of months, with a bit of luck, the fleet will be back in the air hopefully earning money. Whilst we on the outside may well be critical, some don’t understand the importance and national pride held by the people surrounding the presence of “their national airline” and in this region that pride is paramount to the nations’ economic and social success.