Air Vanuatu
Vanuatu's national airline, providing domestic island connectivity and, historically, international services across the South Pacific.
Last updated August 25, 2026
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Overview
Air Vanuatu is the national flag carrier of Vanuatu and a domestic airline headquartered at Air Vanuatu House in Port Vila. Its main operating base is Bauerfield International Airport. The airline was created in 1981, shortly after Vanuatu became independent, to provide a national aviation system for a country whose population and economic activity are distributed across numerous islands. Air transport is particularly important in Vanuatu because maritime travel can be slow, weather-dependent and unsuitable for many time-sensitive journeys. The airline initially developed with assistance from Ansett, which supplied aircraft and operating personnel under a commercial agreement and held a minority stake alongside the Vanuatu government. Its first flight, operated by an Ansett McDonnell Douglas DC-9, connected Sydney and Port Vila in September 1981. After the initial arrangement ended in 1986, the airline was re-established under full government ownership and resumed international operations with support from Australian Airlines. The relationship later continued through Qantas, which provided aircraft-related support, maintenance, pilot training, codesharing and access to its frequent-flyer program. Air Vanuatu's business has historically combined scheduled passenger services, domestic island links and international routes. Its overseas network included destinations in Australia, New Zealand, New Caledonia and other South Pacific markets. Domestically, it served a large number of small airports across the provinces of Malampa, Penama, Shefa, Tafea and Torba. The company also operated or supported selected charter and cargo requirements, although scheduled passenger transport remained its central public-facing activity. Its fleet and operating model changed repeatedly in response to market size, aircraft availability and government policy. Aircraft used over its history included Boeing 737s, ATR turboprops, Saab 2000s, Embraer Bandeirantes, Harbin Y-12s and De Havilland Canada Twin Otters. Air Vanuatu also worked closely with Vanair, Vanuatu's government-owned domestic carrier. The two airlines merged in 2001, separated later that year, and merged again in 2004. The airline experienced severe disruption during the COVID-19 pandemic. In 2020 it announced management, fleet-order and network changes, including postponement of four Airbus A220 deliveries and a review of its route structure. In May 2024, Air Vanuatu ceased operations and was placed into liquidation by the Vanuatu government, with EY appointed as liquidator. Reports at the time described substantial creditor liabilities, an aging or unavailable fleet, aircraft repossession and hundreds of employees across Vanuatu, Australia and New Zealand. The collapse also stranded seasonal workers and interrupted vital international links. Solomon Airlines began temporary Auckland–Port Vila services shortly afterward. Limited domestic Air Vanuatu services resumed in August 2024 following government financial support. The airline's post-liquidation operating position has therefore been narrower than its former role, and international services have not been restored according to the cited reference material.
History
Air Vanuatu was established in 1981, following Vanuatu's independence in 1980. The new state needed an airline capable of supporting both international access and internal links among its widely separated islands. Ansett assisted the creation of the carrier through a five-year agreement covering aircraft and operational staff. Ansett held 40 percent of the new airline, while the Vanuatu government held the remaining 60 percent. Air Vanuatu's first flight departed Sydney for Port Vila on 5 September 1981 using an Ansett-operated McDonnell Douglas DC-9. The initial equipment arrangement changed quickly. A Boeing 737-200 operated by Polynesian Airlines replaced the DC-9 in 1982, and an Ansett Boeing 737-200 took over in 1985. When the Ansett agreement expired in March 1986 without renewal, Air Vanuatu was temporarily grounded. In 1987, the company was re-established as a wholly government-owned airline after Vanuatu reached a new commercial arrangement with Australian Airlines. Weekly Sydney–Port Vila services resumed in December 1987 with a Boeing 727-200 chartered from Australian. Air Vanuatu bought the aircraft in 1989 and leased it back to Australian on days when it was not needed for Air Vanuatu operations. The Boeing 727 was replaced in 1992 by a leased Boeing 737-400. The airline also leased an Embraer EMB 110 Bandeirante for service between Port Vila and Nouméa. These arrangements continued after Australian Airlines became part of Qantas in 1993, and the commercial relationship transferred to Qantas. Qantas subsequently remained an important technical and commercial partner, supporting maintenance and pilot training, codesharing on Australian routes and participation in the Qantas Frequent Flyer program. Air Vanuatu took delivery of its own Boeing 737-300 in April 1997, ending the lease of the Qantas 737-400. The Bandeirante was replaced during the same month by a Saab 2000, although the Saab lease ended in 1999. In June 1999, the airline began using a De Havilland Canada Dash 8 supplied by Vanair for weekly Nouméa services. Relations with Vanair were central to the development of domestic aviation in Vanuatu. Air Vanuatu merged with Vanair in April 2001, but the transaction was reversed five months later. An ATR 42 entered service in November 2003 for domestic routes, and Air Vanuatu and Vanair merged again in September 2004. In 2008, the Boeing 737-300 was replaced with a Boeing 737-800. Three Harbin Y-12 aircraft joined the fleet in early 2009, followed by a new ATR 72-500 in October. The ATR 72 entered revenue service in November 2009, and a second aircraft of the type arrived in 2014. The Harbin aircraft were retired in 2016 and replaced with De Havilland Canada DHC-6 Twin Otters, better suited to the country's smaller airfields. For much of its history, Air Vanuatu combined international access with a broad domestic network. At one point its domestic schedule covered 28 routes serving airports throughout the Vanuatu archipelago. Internationally, it connected Port Vila with Australia, New Zealand, New Caledonia and other South Pacific points. The airline's role extended beyond ordinary commercial travel: dependable air links supported tourism, business, public administration, remote communities and emergency movement between islands. The COVID-19 pandemic placed significant pressure on the carrier. In July 2020, Air Vanuatu announced a management reshuffle, a smaller and more locally focused management structure, postponement of four Airbus A220 aircraft on order and a strategic review of its network. Chief executive Derek Nice stepped down and Joseph Laloyer became acting chief executive while a permanent replacement was sought. In May 2024, Air Vanuatu stopped flying and entered liquidation, with EY appointed to administer the process. Contemporary reports described six aircraft and 441 employees across Vanuatu, Australia and New Zealand, alongside significant creditor obligations and aircraft-maintenance problems. The airline's leased Boeing 737 was repossessed in Melbourne, and only a portion of the remaining fleet was reportedly operational. The collapse disrupted international travel and left 1,458 ni-Vanuatu seasonal workers stranded in New Zealand until alternative arrangements could be made. Solomon Airlines introduced weekly Auckland–Port Vila flights on 22 May 2024. Government funding enabled limited Air Vanuatu domestic services to resume in August 2024, but the airline's international network remained suspended in the cited material.
- 2024
Liquidation and operational suspension
[1]The airline ceases operations in May and enters liquidation under EY, before limited domestic flying resumes in August with government support.
- 2020
COVID-19 restructuring
[1]Air Vanuatu postpones Airbus A220 deliveries, reviews its network and changes its management structure.
- 2016
Harbin Y-12 aircraft are replaced
[1]The airline phases out its Harbin Y-12 aircraft and introduces DHC-6 Twin Otters.
- 2014
Second ATR 72-500 delivered
[1]Air Vanuatu receives a second ATR 72-500 for its regional and domestic operation.
- 2009
ATR 72-500 enters service
[1]A new ATR 72-500 joins the fleet and makes its first revenue flight in November.
- 2008
Boeing 737-800 enters the fleet
[1]The airline replaces its Boeing 737-300 with a Boeing 737-800.
- 2004
Second merger with Vanair
[1]Air Vanuatu and Vanair merge again, consolidating the country's government-linked domestic aviation operations.
- 2001
First merger with Vanair
[1]Air Vanuatu merges with Vanair, although the merger is reversed five months later.
- 1993
Qantas relationship begins
[1]Following Australian Airlines' integration into Qantas, Air Vanuatu's commercial and operational relationship continues under Qantas.
- 1987
Government-owned airline is re-established
[1]A new commercial agreement with Australian Airlines enables weekly Sydney–Port Vila services to restart.
Products and positioning
National carrier focused on essential island connectivity, tourism access and South Pacific regional air transport.
Passenger airlines · 1981
Domestic scheduled passenger services
Air Vanuatu's domestic network historically connected Port Vila and other population centers with airports across Vanuatu's islands. The service was central to the airline's national-carrier role, supporting residents, tourism, public administration and essential travel to communities with limited alternatives. Aircraft such as ATR turboprops and DHC-6 Twin Otters were used for routes with different capacity and runway requirements. Limited domestic services resumed after the 2024 liquidation-related suspension.
Passenger airlines · 1981
International scheduled passenger services
Air Vanuatu formerly operated international flights from Port Vila and other Vanuatu points to Australia, New Zealand, New Caledonia and selected South Pacific destinations. These routes connected the country to major tourism, labor and commercial markets and were an important source of international accessibility. The cited reference material states that the airline did not operate international flights after its 2024 collapse and subsequent limited restart.
Air transport services
Charter and selected freight services
In addition to scheduled passenger flying, Air Vanuatu supported selected charter and freight requirements associated with an island economy. The available reference material does not provide a separately defined branded product range or current schedule for these services.
Brand decisions
2024
Operations suspended and airline placed into liquidationOtherBackground
Air Vanuatu faced severe operational and financial pressure, including aircraft-maintenance constraints, an unavailable or aging fleet and significant creditor obligations.
Action taken
The Government of Vanuatu placed the airline into liquidation in May 2024 and appointed EY as liquidator. Its leased Boeing 737 was repossessed in Melbourne.
Aftermath
International and domestic services were disrupted, seasonal workers were stranded in New Zealand and Solomon Airlines added a temporary Auckland–Port Vila service. Limited domestic Air Vanuatu operations resumed in August after government funding.
Reported creditor obligations. US$74 million (At the time of the May 2024 liquidation)
- Solomon Airlines — Started weekly direct Auckland–Port Vila flights on 22 May 2024 to help replace the lost international connection.
2020
Pandemic-era network and fleet reviewStrategyBackground
The COVID-19 pandemic sharply reduced air travel and placed pressure on Air Vanuatu's management structure, fleet plans and route economics.
Action taken
The airline postponed delivery of four Airbus A220 aircraft, reshaped and localized management, and began a strategic review of its network. Derek Nice stepped down as chief executive and Joseph Laloyer became acting chief executive.
Aftermath
The restructuring reflected the airline's attempt to align its fleet and organization with a smaller, more uncertain market, although later operational and financial difficulties culminated in liquidation in 2024.
Recent events
- 2024
Air Vanuatu suspends operations and enters liquidation[1]
Bankruptcy · Other
The national airline ceased operations in May 2024 and was placed into liquidation by the Government of Vanuatu. EY was appointed as liquidator amid reports of fleet, maintenance and financial difficulties.
- 2024
Solomon Airlines adds Auckland–Port Vila service after Air Vanuatu collapse[1]
Other
Solomon Airlines began weekly direct flights between Auckland and Port Vila to provide an alternative connection after Air Vanuatu stopped operating.
- 2024
Limited domestic services resume[1]
Other
Air Vanuatu resumed limited domestic operations in August following a government funding injection.
- 2020
Air Vanuatu announces pandemic-era restructuring[1]
Product generation · Leadership change
The airline announced management changes, a localized management structure, postponement of four Airbus A220 deliveries and a strategic network review in response to COVID-19.
Sources1 sources
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