Air Vanuatu put into voluntary liquidation, aims to resume operations

The carrier operates only four planes between the country's islands - which rely heavily on tourism - and to Australia, New Zealand and other South Pacific islands. EY said its appointment followed a challenging period for the global aviation industry, including labour shortages, inflation affecting input costs and credit costs.

The Pacific Island nation of Vanuatu has put national carrier Air Vanuatu into voluntary liquidation, liquidator EY said on Thursday, with the aim of resuming normal operations as soon as possible after conducting safety and maintenance checks. The airline had on Wednesday cancelled its international flights to Australia and New Zealand through Sunday, citing extended maintenance requirements for its aircraft, leaving tourists stranded.

All later flights are under review, with affected travellers to be rebooked as soon as operations resume. The carrier operates only four planes between the country's islands - which rely heavily on tourism - and to Australia, New Zealand and other South Pacific islands.

EY said its appointment followed a challenging period for the global aviation industry, including labour shortages, inflation affecting input costs and credit costs. Air Vanuatu has been particularly affected by disruption of tourism activity due to cyclones, it added in a statement.

"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," EY said. The first meeting of creditors will be scheduled shortly, while the current management team will remain in place, it added.

Australian carrier Qantas Airways said it was supporting its codeshare customers who were booked onto Air Vanuatu flights.

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