Airline agreement

New flights likely between Vanuatu and New Caledonia

The deal was signed by Vanuatu's prime minister Charlot Salwai and New Caledonia's president Philippe Germain in Port Vila on Friday.

Air Vanuatu's chief executive Derek Nice said it would allow the airline to increase flights and the size of aircraft used.

The airline's New Caledonia passenger traffic has overtaken New Zealand for second place behind Australia.

Mr Nice said it was set to grow further with new routes beyond the existing Port Vila-Noumea flights.