Air Vanuatu said on Thursday it had canceled international flights for the rest of the week as the Pacific island government considered placing its national carrier into voluntary administration.
All Air Vanuatu international flights between Thursday and Sunday have been canceled and all later flights are under review, the airline said in a statement.
“The government of Vanuatu is now considering placing Air Vanuatu under voluntary administration,” and Ernst & Young has been appointed to advise the government, the statement said.
Air Vanuatu operates just four planes between the country’s islands – which rely heavily on tourism – and to Australia, New Zealand and other South Pacific islands.
The airline had said on Wednesday that several flights had been canceled due to extensive maintenance requirements for its aircraft.
Virgin Australia flights between Brisbane and the Vanuatu capital Port Vila are still scheduled, data from FlightRadar24 shows.
Australian airline Qantas Airways says it is supporting its codeshare customers booked on Air Vanuatu flights.
Australian budget airline Bonza went into voluntary administration last week and canceled flights after its aircraft leasing partner ended its relationship with the company.
