Air Vanuatu enters liquidation after flights cancelled

Air Vanuatu has entered voluntary liquidation after suddenly cancelling dozens of its international flights. EY Australia’s Morgan Kelly, Justin Walsh and Andrew Hanson were appointed as liquidators on Friday. The Pacific nation’s carrier cancelled more than 20 flights to and from Sydney, Brisbane and Auckland for the rest of the week on Wednesday. This was attributed to the result of “extended maintenance requirements” on their aircraft. EY said it would conduct safety and maintenance checks before the resumption of normal operations. Mr Kelly, partner in strategy and transactions, said the airline’s existing management team would remain in place throughout the process. “Air Vanuatu is critical to the people of the Republic of Vanuatu and a strategically important business to the nation,” he said. “Our team is working closely with management to ensure continuity of service to customers and to ensure services continue as seamlessly as possible. “The outlook for the airline is positive, despite pressures on the broader industry, and we will be focused on securing the future of this strategically vital national carrier.” Affected travellers would be informed of this disruption and re-booked on flights as soon as operations resumed. Air Vanuatu has been teetering on the edge of financial ruin after reports the Vanuatu government appointed EY to advise the government. “The Vanuatu government is now considering placing Air Vanuatu ... into voluntary administration,” the airline said in an earlier statement on Thursday. It operates four planes, including one Boeing 737 and three turboprop planes. The Vanuatu Tourism Office said it was aware of reports Air Vanuatu had entered voluntary administration. “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,” it said in a statement. “This is an evolving situation and we will continue to post updates.” Australia’s national carrier Qantas does not operate flights into Vanuatu but has a codeshare agreement with the airline to link passengers to the nation. Qantas said it was supporting customers impacted by the cancellations to find alternative flights. It also encouraged any customers with bookings on Air Vanuatu between now and the end of May to contact their flight provider for refunds. Virgin Australia is the only other Australian airline to operate into Vanuatu with its scheduled flights continuing to go ahead. The airline struggles come after Australian budget start-up Bonza collapsed with the airline only entering operations about a year ago. Bonza’s fleet of planes has begun to be removed from Australia before the airline’s financial crisis is laid bare at a creditors’ meeting.