The Office of the Prime Minister has confirmed that Shareholders were served termination letters to the Board Members of Air Vanuatu this week.
A Council of Ministers meeting on 11 March authorized the termination over concerns about the deteriorating financial situation of the national airline.
The COM has also directed the Director Generals of the four Shareholder ministries namely Office of the Prime Minister, Ministry of Infrastructure & Public Utilities (MIPU), Ministry of Finance & Economic Management (MOFEM) & Ministry of Trade & Tourism to take control of the Board’s roles and functions with close direction and guidance of the Shareholders for 12 months.
The new Board, once appointed, will be responsible for preparing and submitting an economic recovery strategy to stabilise the airline including plans to demerge both domestic and international segments of operations within the next three months.
In a more medium and long-term outlook, the Government said it would want to see whether or not it was feasible to open up the shares of the national airline to attract financial partners from abroad.
That could add extra financial and technological expertise to boost the Government’s attempts to revive chances for Air Vanuatu to re-become viable and give pride to the people of this country.
The Chairman of the Air Vanuatu Board Sam Firi remains as the Government representative to the new Board.
This was resolved by a Shareholders meeting this week.
According to the PM’s Office, the Directors General of the Shareholder ministries will be receiving their engagement letters in coming days.
Photo file