Port Vila, Vanuatu – May 3, 2024
Air Vanuatu, the flagship carrier of the Republic of Vanuatu, faces an existential threat as liquidation proceedings loom over the airline and its parent company, Air Vanuatu (Operations) Limited. Isleno Leasing Company Limited has initiated legal action, filing a claim for liquidation in the Supreme Court of Vanuatu on May 2, 2024, citing unresolved financial obligations.
The genesis of this legal battle traces back to a landmark judgment issued by the Supreme Court on August 20, 2018, which found Air Vanuatu (Operations) Limited liable for a substantial sum. The judgment cast a shadow over the financial viability of the company, and now, with the impending liquidation claim, Air Vanuatu finds itself on the brink of insolvency.
As a government-owned entity, Air Vanuatu’s fate is entwined with the Republic of Vanuatu, placing the burden of its debts squarely on the shoulders of the government. However, amidst mounting uncertainty, the government has yet to confirm whether it will assume responsibility for settling the company’s outstanding liabilities.
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