Richard Butler | Exclusive Report by EMMA GLEASON of THE NEW ZEALAND HERALD | 18TH JULY, 2024
The airline’s grounded planes may get to fly again, with non-binding offers on the table for Air Vanuatu. The embattled national carrier of Vanuatu may soon see a lifeline, with reports that its liquidators Ernst & Young have received several expressions of interest regarding the sale of Air Vanuatu.
The Vanuatu Daily Post reports on the latest updates from liquidators about the future of the airline, which raise hopes for a potential sale and resumption of services.
“We have received interest from a range of parties seeking to resume Air Vanuatu’s operations,” said Ernst & Young (EY) partner in strategy and transactions Morgan Kelly.
“We’re reviewing these offers and will be working toward a resolution as soon as possible.”
Assets include aircraft and airport slots in Auckland, Brisbane, Melbourne, Sydney, Fiji and New Caledonia. A deadline of August 31 has been given for Air Vanuatu exiting liquidation, Vanuatu’s Minister of Finance and Economic Management John Salong told the paper, but the move will require court approval after a compromise with creditors.
Air Vanuatu filed for insolvency on May 6, after being plagued with mechanical issues – the airline only has one Boeing 737 craft – unexpected groundings and “non-stop issues for several months”.
The Vanuatu Government placed the airline into voluntary liquidation later that week, with EY appointed as administrators of the airline’s affairs, a spokesperson said at the time. NZ Herald has reached out to Ernst & Young for comment.
The Vanuatu Daily Post confirmed the dissolution of Air Vanuatu’s board of directors, and the airline had cut 170 jobs by the end of May. All Air Vanuatu pilots remain in employment with the national carrier, the Daily Post’s Doddy Morris reported on June 14, after a claim by Opposition MP Gracia Shadrack that international pilots had their contracts terminated. The claim was countered by EY.
“Critical staff, including ground handling, maintenance, and pilots, continue to be employed by Air Vanuatu,” EY told the paper.
The airline grounded all flights on May 9 and hundreds of passengers were stranded in Vanuatu, Australia and New Zealand.
Kiwi travellers claimed they were left stranded by airlines, insurers and travel agents. Espiritu Santo, an island in the country’s north, was particularly difficult; after the Air Vanuatu grounding there was only a weekly 24-hour ferry to Port Vila. One tourist told the Herald he and his wife paid almost $1800 each for a charter flight to Australia to get home.
Also trying to get home were Ni-Vanuatu citizens in New Zealand. In mid-May RNZ reported over 1458 seasonal workers were stranded with visas expiring on June 9 and no way back to Vanuatu. RSE workers stuck in Hawke’s Bay told the Herald they were facing a four-week long wait.
Immigration NZ is working with the Ministry of Foreign Affairs and Trade to ensure workers with expiring visas can stay in the country lawfully, and by the end of the month, 845 RSE workers had returned home to Vanuatu. Visa entry dates for incoming workers have been extended.
Domestic Air Vanuatu flights in Vanuatu were also grounded and people living in remote parts of the archipelago said the situation was dire, as there were few options on the outer islands. This week the Vanuatu Daily Post reported that Air Vanuatu domestic flights were set to resume.
Wilfred Makaba, acting director of the Civil Aviation Authority of Vanuatu (CAAV), shared the news with the paper, which it reports was also confirmed by a statement from the Minister of Infrastructure and Public Utilities, outlining assessment of Air Vanuatu Domestic operations before CAAV approval.
There are several private charter companies operating in Vanuatu. Beyond air travel, there are boats that travel between the country’s 83 islands. Vanuatu Ferry Ltd services a route from Port Vila on the island of Efate to Luganville on Espiritu Santo, with additional stops.
Air Vanuatu’s website currently carries a message from the liquidators with directions for customers, employees and creditors. There have been no posts on the airline’s Facebook page since March 6.
No date has been set for the resumption of Air Vanuatu services. Brent Thomas, Travel Agents’ Association of New Zealand president, told the Herald the insolvency was “sad and difficult” for the industry.
Although Air Vanuatu’s planes are still grounded as the carrier works towards a solution, there are other ways for Kiwis to get to Port Vila. Vanuatu Tourism Office welcomes the interest in routes the island nation.
“We have already had some great announcements” it said in a statement, with direct flights from Auckland to Vanuatu through Solomon Airlines, which currently offers two flights a week to Port Vila, with a third being added from October 4.
“There are also services available, with connections, with Fiji Airways and Air Calin.”
Virgin Australia operates seven flights a week to the capital from Brisbane.
