Air Vanuatu secures $5.3m gov’t guarantee

The government of the South Pacific Ocean island nation of Vanuatu has agreed to provide guarantees of VUV592.3 million vatu (USD5.3 million) to its national carrier Air Vanuatu (NF, Port Vila). The guarantee, tabled in parliament by Finance Minister Johnny Koanapo on November 17, would cover aircraft insurance and leases for its sole B737-800 YJ-AV8 (msn 42052) from Air Lease Corporation; a single ATR72-600 YJ-AV73 (c/n 1358) from Nordic Aviation Capital (in maintenance); and one DHC-6-300 YJ-RV10 (c/n 679) leased from Capstone Aviation LLC. It would also enable the return to service of the ATR72-600. The airline owns another two DHC-6-300s, YJ-AV11 (c/n 564) and YJ-AV12 (c/n 673), according to the ch-aviation fleets ownership module. The guarantee proposal was seconded by Infrastructure and Public Utilities Minister, Jay Ngwele, and supported by Prime Minister Bob Loughman. The government in October agreed to provide VUV200 million vatu (USD1.8 million) to help Air Vanuatu meet its obligations to Airbus (AIB, Toulouse Blagnac) for the planned purchase of four A220s (2x A220-100s and 2x A220-300s), but said it wanted to reduce the order to two aircraft given the financial situation and investigate the order made by the previous board of the airline. Koanapo again announced the government’s intention to establish a Commission of Inquiry to investigate the financial struggles afflicting the airline, reported the Vanuatu Business Review. He said former boards and management had failed the airline. “Some people will be held responsible when the Commission of Inquiry completes its investigations,” he said. Meanwhile, the island nation recently recorded its first case of COVID-19 after having been one of few countries in the world to have remained free of the virus. Vanuatu closed its borders in March 2020 as part of its efforts to keep the pandemic at bay, only recently having allowed in strictly controlled repatriation flights.