The government of Vanuatu has signed an agreement with Air Vanuatu (NF, Port Vila) wherein it will fund the local carrier's restructuring programme by means of a VUV423 million vatu (USD3.8 million) soft loan.
According to the Vanuatu Daily Post, Minister of Finance and Economic Management (MoFEM), Gaetan Pikioune, told a press conference this week that the funds would be disbursed in two tranches: the first, for VUV190 million vatu (USD1.7 million), was released last week while the second, for VUV233 million vatu (USD2.1 million), will only be released later and on condition government is satisfied with the progress being made. Repayment is over a five-year period.
Air Vanuatu will use the funds to pay off existing debts and to reduce its bank overdraft facilities. It will also be used to source B737-800 and ATR72 spare parts. Air Vanuatu is also in the process of renewing its fleet with a new ATR72-600 to replace its two current ATR72-500s.
Meanwhile, Qantas (QF, Sydney Kingsford Smith) has resumed limited codeshare operations with Air Vanuatu five months after they were suspended.
Air Vanuatu said in a statement that effective immediately, Qantas had resumed marketing and codeshare services on the Ni-Vanuatu carrier's weekly Brisbane International-Espiritu Santo flights.
In January, Qantas and Air New Zealand (NZ, Auckland International) suspended all codeshares with Air Vanuatu, as well as services to the South Pacific islands, citing the poor condition of Port Vila Bauerfield International Airport's main runway 11/29.
Neither carrier has committed to resuming services to Port Vila until such time that a complete USD55 million resurfacing project has been completed.
