European Investors Eye Stake in Air Vanuatu

European investors are reportedly interested in acquiring a stake in Air Vanuatu (NF, Port Vila) and have recently engaged with the airline’s management and administrators, according to the Vanuatu Daily Post. These unnamed investors are believed to be considering a revival of the airline’s international operations.

Ernst & Young (EY), the administrators overseeing Air Vanuatu’s insolvency, declined to comment when contacted by ch-aviation, citing commercial sensitivities associated with the ongoing sale process.

Air Vanuatu suspended its flights in early May, and shortly after, EY confirmed the airline’s severe financial distress, stating it was unable to “meet its financial commitments from its own resources.” Despite this, Morgan Kelly of EY’s Sydney office, who is leading the administration team, described the airline as strategically important to Vanuatu, expressing a positive outlook for its future.

Prior to the suspension, Air Vanuatu serviced around twenty domestic airports and international routes to Sydney Kingsford Smith, Melbourne Tullamarine, Brisbane International, Nouméa La Tontouta, and Nadi. The airline operated a fleet comprising one B737-800, one ATR72-600, and three DHC-6-300s, although not all aircraft were in service, and the B737 has since been repossessed. Plans are in place to relaunch the carrier using its remaining turboprops, initially focusing on domestic routes.

However, the anticipated August 5 restart date for domestic flights appears to have passed without a relaunch. Recent updates from Vanuatu politicians indicated that aircraft and crews were being prepared. Prime Minister Charlot Salwai has noted that his government has not yet received a full report from EY but remains committed to supporting Air Vanuatu’s future and its employees.

According to the EY spokesperson, efforts are ongoing to facilitate the safe resumption of domestic flights.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com