Air Vanuatu cancels flights and plans to file for bankruptcy

An Air Vanuatu plane makes an emergency landing at Sydney Airport, August 2, 2001, after being suspected of transport damage. Air Vanuatu announced on Thursday (May 9, 2024) that the airline has canceled its international flights for four days and is considering filing for bankruptcy for the South Pacific state carrier. (Image by Dean Lewins/AAP via AP)

MELBOURNE, Australia (AP) — Air Vanuatu announced Thursday that the airline has canceled international flights for four days and is considering bankruptcy for the South Pacific state carrier.

It said international flights had been canceled until Sunday and flights after that day were “under review.”

“The Vanuatu Government is now considering placing Air Vanuatu into voluntary administration,” a statement said, referring to the local equivalent of a US Chapter 11 bankruptcy.

“The international firm Ernst & Young has been appointed to assist the Vanuatu Government in reviewing available options and making recommendations,” the statement added.

Thousands of travelers have been stranded by cancellations.