Air Vanuatu is gearing up to restart domestic operations as pilot training flights resume.
Liquidator Ernst & Young (EY) Australia, which was called in after the airline collapsed in May, said domestic flights will be back “in the short term”, with no timing as of yet for the return of international operations.
EY announced the restart of pilot training flights on Thursday with the support of the Vanuatu government and civil aviation authority.
Morgan Kelly, partner in strategy and transactions at EY, said domestic flights by Vanuatu’s national carrier represent “critical infrastructure” for approximately 300,000 people living across more than 60 islands, and demonstrate that there is a future for the airline.
“The resumption of domestic services is a major step forward for Air Vanuatu after entering voluntary liquidation in May, and positive news for employees and the country,” said Kelly.
“Air Vanuatu is committed to operating safely, reliably, and consistently. Air Vanuatu has retained a full contingent of staff to be able to resume operations and is currently undertaking training flights for pilots.
“We thank the Civil Aviation Authority Vanuatu and Vanuatu Government for its support of this critical part of the country’s infrastructure. We’d also like to acknowledge all Air Vanuatu employees for the perseverance, cooperation, and dedication to Vanuatu’s national carrier through the process to-date.”
Ernst & Young last month confirmed it had received non-binding offers for the Vanuatu flag carrier, which went into voluntary liquidation owing at least $99 million (US$64 million).
“We have received interest from a range of parties seeking to resume Air Vanuatu’s operations,” said Kelly.
“We’re reviewing these offers and will be working toward a resolution as soon as possible.”
The offers are being considered as part of a structured sale or recapitalisation process, said Ernst & Young, with the aim of securing the best outcome for creditors.
“The assets of the business include international airport slots in Brisbane, Melbourne, Sydney, Auckland, New Caledonia and Fiji, as well as owned and leased aircraft and other assets,” the liquidator said.
“The liquidators will update creditors as they are able to. A date of resumption of Air Vanuatu services is yet to be determined.”
EY at the end of May axed 170 jobs from Air Vanuatu, saying it was looking to “right-size the company’s cost base” as it proceeded with the expressions of interest campaign.
Prior to entering voluntary liquidation, Air Vanuatu was experiencing maintenance difficulties with its only jet aircraft, a Boeing 737-800, which has not flown since January. The airline also operates an ATR 72-600 for inter-island travel.
