Monday 10th March 2025 – Air Vanuatu’s operations under the new company AV3 – remains a key focus under the Government’s 100-days plan, to ensure passengers can continue to travel within the country.
The Government fully understands the level of frustration customers of Air Vanuatu have. However, the Government calls for patience as it works its way through the current state of affairs to restore the airline within the next three months or so with a particular focus on the domestic service before considering the next steps.
To update everyone, currently the shareholders are awaiting recommendations from the Board of Directors on proposals from two companies – both of which have proposals to partner with AV3. There is also an offer from Australia that is on the table involving Fiji Airways in a temporary six month arrangement. However, Prime Minister Jotham Napat recently told visiting Australian minister for International Development and Pacific Affairs Pat Conroy that the offer remains an option until all other options have been explored.
In addition, Deputy Prime Minister Johnny Koanapo who is one of the shareholders, wants to give all the options due consideration before deciding the long-term future of the airline.
All of these, amidst a liquidation process that is yet to be properly wrapped up by Ernest and Young.
The Deputy Prime Minister says as soon as the liquidators have filed their final reports then the Government can release final payments of over Vt200 million.
He says the shareholders are somewhat hamstrung by the liquidation process, which means the AV3 Board remains under temporary directorship of former deputy prime minister Matai Seremiah. It will remain so until a proper board of directors is recruited under the new Commercial Business Enterprise Act, which was passed in parliament last year.
Under the new Act, all future board of directors must be advertised publicly and their appointment done on merit. It means anyone will be able to apply once advertised, a shift away from the former practice.
The Deputy Prime Minister also says Air Vanuatu has been operating under an Articles of Association and the Companies Act, which were not robust enough. The government is adamant that with AV3 and Air Vanuatu operations coming under the new Act, Air Vanuatu should find its feet again and operate more as a proper commercial entity without politicians or anyone getting a foothold in its management – the key reason for the airline’s demise.
As far as this Government is concerned, the airline is so vital to our connectivity and for the tourism industry. We are tackling so many issues but given enough time, the airline should be back up. The airline’s domestic service is being prioritized over the international service, which is why a billion vatu in the 2025 budget is ear-marked towards purchasing of two new Twin Otters, the Deputy Prime Minister has already declared publicly.