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Air Vanuatu to bring back some flights this week

written by Jake Nelson | August 6, 2024

Air Vanuatu’s ATR 72-600, YJ-AV73, is used for island-hopping flights. (Image: Air Vanuatu)

Air Vanuatu is resuming scheduled charter flights this week as its liquidator moves towards fully recommencing domestic services.

The carrier, which restarted pilot training flights last month with the support of the Vanuatu government and civil aviation authority, will share further details on the flights – including a schedule and booking process – shortly, according to a statement from liquidator EY Australia.

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“It is important that passengers are aware that no pre-liquidation tickets will be accepted for these flights,” the statement read.

“A date for commencement of Air Vanuatu’s full domestic operations will be set once all necessary requirements have been satisfied. Air Vanuatu’s domestic operations represent critical infrastructure for the country’s population of approximately 300,000 across more than 60 islands.

“Timing of resumption of international operations is yet to be determined.”

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Liquidator Morgan Kelly, partner in strategy and transactions at EY, said bringing back flights is “critical” for the restructuring of Air Vanuatu.

“Air Vanuatu is focused on recommencing services in a safe and reliable manner. The planned recommencement of scheduled charter flights is another step towards the full resumption of domestic services,” he said.

“I’d again like to thank the Civil Aviation Authority Vanuatu and Vanuatu Government for their support of this critical part of the country’s infrastructure.”

Ernst & Young 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.

“We have received interest from a range of parties seeking to resume Air Vanuatu’s operations,” Kelly said at the time.

“We’re reviewing these offers and will be working toward a resolution as soon as possible.”

The offers are being considered as part of a structured sale or recapitalisation process, said EY, to secure the best outcome for creditors.

“The assets of the business include international airport slots in Brisbane, Melbourne, Sydney, Auckland, New Caledonia and Fiji, as well as owned and leased aircraft and other assets,” the liquidator said.

EY at the end of May axed 170 jobs from Air Vanuatu, saying it was looking to “right-size the company’s cost base” as it proceeded with the expressions of interest campaign.

Before entering voluntary liquidation, Air Vanuatu was experiencing maintenance difficulties with its only jet aircraft, a Boeing 737-800, which has not flown since January. The airline also operates an ATR 72-600 for inter-island travel.

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