Air Vanuatu - Liquidation

Air Vanuatu, the national airline of the South Pacific ocean nation of Vanuatu, entered liquidation on 9 May, owing creditors over US $83.1 million.

Founded in 1987, the airline encountered several operational challenges in recent years, such as travel restrictions associated with the COVID-19 pandemic, natural disasters including the double cyclone event in 2023, and disruptions to the availability of its fleet due to global aviation parts shortages.

Morgan Kelly, Andrew Hanson and Justin Walsh of EY were appointed joint liquidators and immediately grounded all flights whilst safety and airworthiness checks of the airline’s fleet could be completed, insurance cover could be confirmed, and adequate funding could be obtained.

The liquidators intend to continue the operations of the company whilst going concern options for the business can be explored. They warn, however, that in the absence of funding and/or the support of the company’s key stakeholders, the airline will need to be wound up.