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Customers left stranded as Air Vanuatu enters voluntary liquidation, cancelling all flights

air-vanuatu

The major airline has entered voluntary liquidation, cancelling all flights. Words by Blake Antrobus.

Air Vanuatu has been placed into voluntary liquidation, with Australian liquidators stepping in to wind up the beleaguered airline as it cans international flights.

In a statement, Ernst and Young Australia confirmed Morgan Kelly, Justin Walsh and Andrew Hanson had been appointed as voluntary liquidators of Air Vanuatu following a special resolution of shareholders.

It follows a turbulent week for the Vanuatu-based airline – the island nation’s national carrier – after it suspended all flights across the board.

The liquidators will conduct safety and maintenance checks before the resumption of normal operations, Ernst and Young said in their statement.

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Affected travellers will be informed of this disruption and rebooked on flights as soon as operations resume.

“Air Vanuatu is critical to the people of the Republic of Vanuatu and a strategically important business to the nation,” Morgan Kelly, partner in Strategy & Transactions at EY said.

“Our team is working closely with management to ensure continuity of service to customers and to ensure services continue as seamlessly as possible,” said Morgan Kelly, Partner

“The outlook for the airline is positive, despite pressures on the broader industry, and we will be focused on securing the future of this strategically vital national carrier.”

The first creditors meeting will be scheduled shortly.

Air Vanuatu has been particularly affected by disruption of tourism activity due to cyclones, Ernst and Young said.

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Bonza. Source: Supplied

It comes just days after the collapse of Australian airline Bonza, less than 18 months after launching its first flights.

Almost 60,000 Bonza customers have been left out of pocket following the collapse, a court has heard.

A court heard on Tuesday that the company had more than 60,000 creditors – including 323 employees who were owed wages and annual leave and 120 trade creditors.

There were a further 57,933 customers who had bookings with the company, barrister James Hutton SC, who is acting for the administrators, told the Federal Court on Tuesday morning.

This story appeared originally on news.com.au and has been published here with permission.

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