Air Vanuatu enters administration as flights canceled

Air Vanuatu reportedly collapsed with 22 flights canceled or delayed and hundreds of passengers stranded.

The airline, based in Port Vila, in Vanuatu’s capital, has reportedly entered administration.

Air Vanuatu canceled 20 flights across the Pacific from Wednesday to Saturday, including services to and from Sydney, Brisbane and Auckland.

Two flights arriving and departing from Nouméa have also had their schedules modified.

The airline blamed the disruptions on the “extended maintenance needs” of its planes.

“We are working with our partner carriers to minimize disruption to our customers,” the airline said on its website.

Air Vanuatu was placed into voluntary administration on Monday, local media outlet The Vanuatu Daily Post reported.

The consulting firm Ernst & Young was reportedly approached.

A New Zealand traveler said he and his wife were stranded on the Vanuatuan island of Espiritu Santo with other Air Vanuatu passengers.

“We haven’t heard anything at all except that (the flights) have all been cancelled,” he told the NZ Herald.

Air Vanuatu has been contacted for comment.

The Vanuatu Tourism Board said it was aware of the situation and was in contact with the airline and the government.

This follows the collapse of Australian budget airline Bonza, which entered voluntary administration last Tuesday.

The company has appointed an external administrator, Hall Chadwick, who says the move will allow “an independent insolvency practitioner to take control of the company”, during which time creditors’ claims will be suspended.

Federal Transport Minister Catherine King said a helpline had been set up for affected passengers, but admitted the chances of Bonza’s operations resuming were low.

The airline said refunds would be processed within 21 days.

In a statement, Bonza revealed that its aircraft leases had been unexpectedly terminated due to defaulting on its loans the previous month.