Air Vanuatu, a collapsed airline, is facing financial ruin, owing creditors $110 million with a deficit of $98.6 million. The company’s liquidators, Ernst and Young, revealed in a recent report that the actual amount owed is expected to be even higher than the reported figure.
Despite exploring options to save the business, including a potential sale, the liquidators are relying on the Vanuatu government for financial support to prevent a complete collapse of the airline. They expressed gratitude for the government’s assistance, stating that without it, operations would cease, and the company would wind down due to its dire financial position.
The airline’s operational challenges, including COVID-19 travel restrictions, natural disasters, and global aviation part shortages, have contributed to its financial woes. Currently, only two of Air Vanuatu’s six aircraft are flight-ready, further hampering its ability to recover.