Air Vanuatu (Operations) Limited (In Liquidation) announced a restructuring of operations to reduce operating costs. Approximately 170 roles are expected to be impacted by the restructuring, as the liquidators seek to right size the company’s cost base and prepare the business for sale or recapitalisation.
“The restructuring at Air Vanuatu today is an unfortunate but necessary step to give the business the opportunity to bring on board new investors and capitalise on strong domestic and international demand for travel,” said Morgan Kelly, Partner in Strategy & Transactions at EY. “This restructuring attempts to position Air Vanuatu for growth into the future.”
An Expressions of Interest campaign is currently underway, with interested parties provided a deadline of Friday 7 June. The business has access to international airport slots in Brisbane, Melbourne, Sydney, Auckland, New Caledonia and Fiji, as well as owned and leased aircraft and other assets.
“Despite its significant financial difficulties, the liquidators are committed to identifying a solution to Air Vanuatu. We share the Vanuatuan Government’s view of strong demand for tourism driving international demand, and this to support demand for key domestic routes,” Kelly said.
While it has not yet been determined when Air Vanuatu services will resume, the liquidator is in discussions to attempt to resume critical routes in the short term, and minimise disruption.
Morgan Kelly, Justin Walsh and Andrew Hanson of Ernst & Young Australia (EY Australia) were appointed Voluntary Liquidators of Air Vanuatu (Operations) Limited (In Liquidation) on 9 May 2024. In the first creditors report, the Liquidators highlighted the high cost base of the airline relative to peers and the large number of staff for an airline of its operating size and network.
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