Air Vanuatu: Headed to Bankruptcy, Virgin Australia: Stepping In

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May 09, 2024
Air Vanuatu Bankruptcy

With Air Vanuatu’s planes still grounded following the announcement of its liquidation last week, Virgin Australia has increased capacity between Australia and Vanuatu to five times per week utilising a 737-800 aircraft. This schedule will remain in place until the end of June.

On Monday, Friday and Saturday, flight VA53 will depart Brisbane at 10.40am and touch down in Port Vila at 2.40pm. Return flights (VA54) will depart VLI at 3.20pm and arrive back in BNE at 5.50pm.

On Wednesday and Sunday, flights will leave BNE at 11.55am, land in VLI at 3.35pm, and then depart the Vanuatu capital at 4.35pm before arriving in Queensland at 6.45pm. 

In more good news for travellers a Virgin Australian spokesperson has said, “Virgin Australia has simultaneously applied to the International Air Services Commission to increase our allocation of seat capacity between Australia and Vanuatu, with plans to quickly commence a further seven weekly services from east coast gateways into Vanuatu, supporting continued connectivity with our Pacific neighbours.”

When will Air Vanuatu recommence operations?

Ernst & Young said in a statement, “The liquidators intend to resume normal trading as soon as possible, while considering all opportunities to place the carrier on a stronger footing,”

“Affected travellers will be informed of this disruption and re-booked on flights as soon as operations resume.

Ernst & Young also said it would conduct safety and maintenance checks before resuming normal operations and that the existing management team will remain in place and will work closely with the liquidators through this process.

In case you missed it …

In yet another blow to aviation in the Australia/Pacific region this week, Air Vanuatu has cancelled all international flights for five days as it considers bankruptcy protection.

A statement from the airline said,

“The Vanuatu government is now considering placing Air Vanuatu into voluntary administration. The international firm Ernst & Young has been appointed to assist the Vanuatu government in reviewing available options and put forward recommendations. Ernst & Young representatives arrived in Port Vila today to begin an assessment of Air Vanuatu’s financials and are being assisted by the Vanuatu Government and the Air Vanuatu team.”

In conflicting messages the Air Vanuatu Website states, “Due extended maintenance requirements on our Aircraft the following services listed below are impacted.  We are working with our partner carriers to minimise the disruption to our Guests.”

All passengers are advised not to go to the airport as flights are cancelled. Virgin Australia are still operating Brisbane- Port Vila flights.

Air Vanuatu has set up a travel advisory page for impacted stakeholders, including passengers.

About Air Vanuatu

Established in 1981, the national airline serves as a crucial link between the various islands within Vanuatu and between key destinations like Australia, New Zealand, and Fiji. Air Vanuatu’s fleet comprises a mix of aircraft designed for both regional and international travel, with the ATR 72-600 serving the domestic and regional routes, while the Boeing 737-800 handles international flights. The airline is known for its warm, friendly service that reflects the spirit of Vanuatu, making it a popular choice for travelers seeking to experience the rich culture and stunning landscapes of this island nation. Air Vanuatu plays a significant role in connecting people within and beyond the archipelago.

We will continue to update this story as more information becomes available.