Air Vanuatu set to soar again after successful Restructure
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Air Vanuatu, the national carrier of Vanuatu, is poised to return to the skies following a successful restructuring led by Ernst and Young (EY). The Supreme Court of Vanuatu has ratified the Deed of Compromise, marking a significant milestone in the airline’s recovery. This decision transfers the company’s shares to AV3 Ltd and terminates the liquidation process, effectively handing control back to Air Vanuatu’s management.
A New Beginning
Morgan Kelly, Partner in Strategy & Transactions at EY Australia, expressed his satisfaction with the court’s decision, stating, “The implementation of the Deed of Compromise maximises the return to creditors and presents an opportunity for the Air Vanuatu business to continue, saving jobs and providing vital aviation services for Vanuatu.” He also extended gratitude to the Vanuatu Government and the Civil Aviation Authority Vanuatu for their support throughout the process.
The Collapse and Path to Recovery
Air Vanuatu entered voluntary liquidation on 9 May 2024, which led to the cancellation of all flights to Australia, leaving many tourists and labour workers stranded. The financial difficulties that prompted this decision culminated from various factors, including the economic impact of the COVID-19 pandemic, which severely disrupted global travel and tourism.
Despite these challenges, Air Vanuatu made a partial comeback in August 2023, launching a limited scheduled domestic charter operation. This interim measure provided a glimmer of hope for the airline’s future, demonstrating its resilience and commitment to serving the people of Vanuatu.
Looking Ahead
With the Supreme Court’s approval of the Deed of Compromise, Air Vanuatu is now set to resume its operations fully. This restructuring ensures the airline’s survival and positions it for future growth and stability. Air Vanuatu’s return is expected to positively impact the country’s economy, tourism, and employment.
As the airline prepares to take to the skies once more, it will continue to play a crucial role in connecting Vanuatu with the rest of the world, providing essential services and fostering economic development.
Are you excited about Air Vanuatu’s return? How do you think this will impact travel and tourism in Vanuatu? Share your thoughts in the comments below!
