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Air Vanuatu cancels flights after government-ordered financial review

Hundreds of passengers have been stranded across Australia, New Zealand and the Pacific after the airline grounded dozens of flights.

Vanuatu remains a popular holiday destination for Australians. Picture: Vanuatu Tourism Office
Vanuatu remains a popular holiday destination for Australians. Picture: Vanuatu Tourism Office

Air Vanuatu has cancelled multiple flights to and from Australia, Noumea and New Zealand as the island nation’s government considers placing the carrier into administration.

International accountancy firm Ernst & Young had been appointed to assist the Vanuatu Government review available options and put forward recommendations.

It comes just over a week after the collapse of Bonza airlines, with fears the move will create more disruption for travellers.

Cancelled flights include services from Sydney to Port Vila on May 8 to 12 and from Brisbane to Port Vila and Espiritu Santo on the same dates.

In a statement Air Vanuatu said Ernst & Young representatives had arrived in Port Vila on Thursday to begin an assessment of the airline’s financial position.

On its website, the airline attributed the schedule changes to “extended maintenance requirements on our aircraft,” and said it was working with partner airlines to minimise disruptions.

Air Vanuatu uses a single Boeing 737-800 to operate its international network and also has a turboprop for domestic flights.

Since the end of March, Air Vanuatu had been operating international routes via partner Solomon Airlines and their two-plane fleet, with the expectation the 737 would be back in service by the end of April.

The Vanuatu Tourism Office said it was aware of reports Air Vanuatu had entered voluntary administration but was “unable to share further information”.

“We are conscious of the impact this situation has on travellers, ticket holders and the industry and on behalf of the Vanuatu tourism industry extend our apologies to anyone affected,” said a tourism office spokeswoman.

“This is an evolving situation and we will continue to post updates to www.vanuatu.travel.”

Benie Masuvakalo of Sydney was among hundreds of people believed to be caught out by the mass flight cancellations.

The owner of a tourism business in Vanuatu, Mr Masuvakalo had booked to fly to the Pacific Island nation on Wednesday, but his flight from Sydney was cancelled and he was sent to Brisbane.

Port Vila in Vanuatu.
Port Vila in Vanuatu.

He expected to fly out to Espiritu Santo on Thursday but was told by the hotel receptionist in Brisbane he had been booked in till Friday.

“We were told we’d leave on Thursday at 11 and we got to reception and they said we were booked for another night and we were leaving tomorrow,” he said.

“I don’t think we are leaving on Friday at all. We really don’t know what’s going on.”

Mr Masuvakalo said there were about 70 people who were taken from Sydney to Brisbane and were also in limbo.

Brisbane Airport has advised customers Air Vanuatu had cancelled flights from Thursday to at least Friday.

“Passengers scheduled to fly with Air Vanuatu today or tomorrow should not travel to the airport,” Brisbane Airport said in a statement.

Air Vanuatu’s partner airline Qantas was monitoring the situation, and said they were supporting customers impacted by the flight cancellations.

“We’re encouraging any Qantas customer who holds a booking on an Air Vanuatu flight between now and 31 May to call us or their travel agent to discuss options including refunds or a flight credit,” Qantas said.

“We will work to book any of these customers who are mid-journey onto alternative flights.

Qantas does not operate flights into Vanuatu.”

Other than Air Vanuatu, Virgin Australia is the only other airline operating flights to Port Vila, from Brisbane four times a week.

Original URL: https://www.theaustralian.com.au/business/aviation/air-vanuatu-cancels-flights-after-reports-of-voluntary-administration/news-story/bfbe6dece42264e2a283794603b067b3