Kiwis stranded as Air Vanuatu hits extreme financial turbulence

Air Vanuatu has reportedly gone into voluntary administration, with all flights this week cancelled.

Kiwi tourists have been left stranded in Vanuatu this evening, after the island country’s national carrier hit an extreme bout of financial turbulence.

Air Vanuatu has reportedly gone into voluntary administration, with all flights this week cancelled.

Among the holidaymakers affected are Gavin and his wife, who were expected to fly home to Christchurch via Brisbane this afternoon.

"We’re not sure what’s going on," he told 1News. "It’s been doom and gloom around the place."

Flights have been canned as Vanuatu’s government considers placing the national carrier into voluntary administration.

A patchy internet and phone signal has made it difficult to find out any information.

"It creates an anxiety. It’s not what you want when you’re on holiday."

There are currently 33 New Zealanders registered on SafeTravel as being in Vanuatu, according to a spokesperson for the Ministry of Foreign Affairs and Trade (MFAT).

"The ministry has not been approached for assistance from any New Zealanders in Vanuatu."

Future flights under review

Vanuatu's government today confirmed it’s considering placing Air Vanuatu into voluntary administration.

Representatives from Ernst & Young have arrived in the capital, Port Vila, after the international accounting firm was appointed to assist in "reviewing available options and put forward recommendations to the Vanuatu Government", an Air Vanuatu spokesperson told 1News.

The airline confirmed all international flights from Thursday, May 9 through to Sunday, May 12 have been cancelled. All future flights are under review.

Board of Airline Representatives New Zealand (BARNZ) executive director Cath O’Brien said it’s "always a sad thing to hear of an airline going through these challenges".

"It’s hard to say where things will go from here. Aviation, you know – it’s a complex and expensive business with high costs."

Pacific routes, she said, are notoriously difficult to operate in.

"You haven’t got a lot of traffic to serve, but it’s a really important connectivity."

Travellers who spoke to 1News said they’re unsure how they’ll pay for the extra nights overseas following talks with their insurers.

"They advised us that if the company has gone into liquidation, there's a potential that we may not be covered," Gavin said.

The uncertainty around the flights has led Oceania Football to move some of its upcoming matches from Port Vila to Fiji.

Air New Zealand, Qantas responds

Air New Zealand general manager domestic Jeremy O’Brien told 1News the airline "has a small number of customers who will be impacted by Air Vanuatu’s cancellations".

He said while the airline "would like to be in a position to provide a service to Vanuatu", ongoing issues with its supply chain and engine maintenance means they "currently don’t have enough aircraft to do so".

Meanwhile, a Qantas spokesperson said it's currently "supporting codeshare customers who have been impacted by Air Vanuatu cancellations".

"We’re encouraging any Qantas customer who holds a booking on an Air Vanuatu flight between now and 31 May to call us or their travel agent to discuss options including refunds or a flight credit.

"We will work to book any of these customers who are mid-journey onto alternative flights."

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