Nearly 200 people have lost their jobs as liquidators restructure Air Vanuatu to reduce the embattled airline’s operating costs.
Approximately 170 staff members have been made redundant as liquidators try to “prepare the business for sale or recapitalisation”.
The airline employed 441 people prior to the liquidation, which began on May 9.
The affected staff were notified this morning, Ernst & Young Australia liquidator Morgan Kelly said.
“The restructuring at Air Vanuatu today is an unfortunate but necessary step to give the business the opportunity to bring on board new investors and capitalise on strong domestic and international demand for travel,” Kelly said.
“This restructuring attempts to position Air Vanuatu for growth into the future.
“Despite its significant financial difficulties, the liquidators are committed to identifying a solution to Air Vanuatu.
“We share the Vanuatuan government’s view of strong demand for tourism driving international demand, and this to support demand for key domestic routes.”
Justin Walsh and Andrew Hanson were also appointed as liquidators.
Air Vanuatu has access to international airport slots in Brisbane, Melbourne, Sydney, Auckland, New Caledonia and Fiji.
It has not yet been determined if the company will be able to continue operations.