Airline Confirms Aircraft Changes Are Pre-Arranged

Air Vanuatu’s CEO Mr Finau confirmed that the recent return of one of the Twin Otter aircraft was pre-arranged. He explained that the airline has a plan in place called the Recovery Plan which has been presented to stakeholders since early 2021. This plan has always included adding other aircraft to the fleet and the return of this twin otter at the end of its lease. The arrival of additional aircraft to support the domestic routes, remains part of the plan and is anticipated before the end of 2022. While there is still a threat to the lease of the Boeing 737 that operates the international routes, the airline and the lessor have agreed an interim plan that will include government reducing the significant arrears that have accumulated during COVID.

Like every airline in the world, the recovery from the impact of the COVID-19 situation is challenging and requires careful planning and funding. Governments and financiers have played an important role in supporting airlines globally to maintain and recover operations. Similarly, the Vanuatu Government has made financial arrangements that will provide debt relief to the National Airline which is a state-owned entity. This commitment has been endorsed via a Council of Ministers resolution that was passed and signed just before the government was dissolved. Given the subsequent dissolution of the government, it is expected that implementing this financial arrangement may be complicated and even delayed. The airline confirms that all financial arrangements are with the government and have no relation whatsoever to VNPF. At the airline’s request, the Prime Minister and the Shareholders have agreed to meet with the Board to further discuss this matter and seek solutions today.

Meanwhile the airline has reiterated statements that were released to the media in detail in July, which confirmed that all three safety audits conducted this year were all passed. “We are absolutely committed to safety and will do what is required to maintain our safety standards” says CEO Mr Finau.