Seeing as how government intervention and other tried methods have still failed to revive Air Vanuatu, a team of Australian aviation experts is the next to be tasked with the responsibility of trying to save the struggling national carrier.
The aviation experts have already arrived in Port Vila and were chosen upon a request from Prime Minister Ishmael Kalsakau.
Air travel to Vanuatu has typically only been possible through Air Vanuatu. While the severe lack of competition can usually be seen as a good thing for an airline monopoly in a tourism-dependent country, the outcome is different for the national carrier. But why was Air Vanuatu struggling to thrive in ideal conditions? Well for starters, the airline was operating a fleet of less than six aircraft in pre-pandemic times.
And when adding several unpaid debts to the mix, it became apparent that Air Vanuatu was struggling before the pandemic and the global health crisis ultimately worsened the situation as Vanuatu became one of the world's hermit kingdoms, similar to New Zealand. But even after borders were reopened and restrictions were lifted, Air Vanuatu remained unable to stay afloat for long when the tourism demand for the country surged.
Heavily in debt and with limited aircraft available in the market for leasing opportunities, the national carrier saw itself as unable to meet the high demand for both domestic and international travel with its fleet of ATR 72-600, one Boeing 737-800, and two de Havilland DHC-6s. The operational troubles of Air Vanuatu probably seem like a problem of poor management, which was unfortunately the case.
Upon investigation from authorities, it was eventually discovered that the previous management of the airline, including the former chairman of the board and the former chief executive officer, owed a debt of over $70,000. The hefty sum came from both men having chartered company aircraft for their individual uses and allegedly stealing the airline's computers.