Air Vanuatu’s sole jet, a B737-800, has been repossessed by Los Angeles headquartered lessor Air Lease Corporation over unpaid lease debts of USD4.5m, prompting the Vanuatu government to appoint liquidators and suspend operations.
A May 16, 2024, report revealed the airline’s significant financial distress, with debts totaling over USD 73m, making it unable to fund operations or pay debts, resulting in grounded aircraft and defaulted supplier arrangements.
Vanuatu’s Prime Minister Charlot Salwai disclosed that USD 5.3m of USD 16.6m allocated for a new aircraft was used to clear Air Vanuatu’s ATR72-600 lease debts, with additional fuel bill arrears to Societe de Service Petroliers.
The government plans to reboot Air Vanuatu, potentially with private sector involvement, while other airlines like Virgin Australia, Fiji Airways, and Solomon Airlines have increased services to cover routes previously operated by Air Vanuatu.
