Air Vanuatu (NF, Port Vila) is aiming to exit administration by August 31, 2024, according to Vanuatu's minister of finance and economic management, John Salong, and confirmed to ch-aviation by the airline's administrator, Ernst & Young.
"It has been challenging to set a specific deadline due to uncertainties as everything had been muddy, but now that we are addressing these issues we are aiming for 31 August for Air Vanuatu to exit liquidation, pending court approval of the creditors’ compromise," Salong told Vanuatu's Island Business outlet.
“We are aware of the minister’s comments, and we are working toward that date," a spokesperson for the administrator told ch-aviation.
State-owned Air Vanuatu ceased operations in early May, with Ernst & Young taking control shortly after. The administrator quickly concluded that the carrier was in significant financial distress and its operations were hampered by its financial constraints. Creditors, staff, and the government are owed around USD73.5 million, the airline's sole jet, a B737-800, has been repossessed, and three of the five remaining turboprops need overhauls before they can resume operations.
Salong says the airline still needs to hammer out a deal with creditors and reduce the debt. "This situation is known as a creditors’ compromise or deed of compromise, which has not yet occurred," he explained. "This deed of compromise needs to happen.”
