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Airline cancels Australian flights, calls in administrators

Air Vanuatu has cancelled flights to Australia and New Zealand, and gone into administration.

Air Vanuatu has cancelled flights to Australia and New Zealand, and gone into administration. Photo: Getty

More travellers have been left stranded with a second airline grounding its Australian flights as it collapses into administration.

Air Vanuatu flights to and from Australia and New Zealand were abruptly cancelled on Thursday, amid reports the Pacific Island airline had gone into administration.

It follows the recent collapse of domestic airline Bonza. The first Bonza plane, nicknamed Bruce, left Australia on Thursday as the lessors of the budget carrier’s planes “enforces its right” to repossess the fleet.

The aircraft left Sunshine Coast Airport early on Thursday, bound for a refuelling stop in Honolulu before continuing to an unknown destination.

Just hours later, Brisbane Airport reportedly confirmed that passengers scheduled to fly with Air Vanuatu that they would not be be taking off.

According to the airline’s website – which also showed all Sydney flights grounded for several days –  “extended maintenance requirements” were behind the grounding. Brisbane and Auckland flights had similar cancellations.

air vanuatu

Air Vanuatu’s website on Thursday afternoon.

Local media in Vanuatu reported this week that Air Vanuatu board chairman Alain Lew had said the board “no longer exists since the appointment of an administrator”.

The Vanuatu Daily Post said Air Vanuatu was operating with a chief executive who “allegedly holds the position only because no one else wants to take on the role, given the airline’s continuous state of decline”.

Later on Thursday, the airline confirmed Ernst & Young had “been appointed to assist the Vanuatu government in reviewing available options”.

“The Vanuatu government is now considering placing Air Vanuatu, the national carrier of Vanuatu, into voluntary administration,” it said.

Ernst & Young representatives jetted into Port Vila on Thursday.

Air Vanuatu has a single Boeing 737-800 for international flights and a turboprop for domestic flights.

It has shared international routes with partner Solomon Airlines since the end of March.

End arrives for Bonza

Bonza’s plane Bruce left after the discount airline’s fleet of Boeing 747 Max 8s had spent more than a week parked at the Sunshine Coast, Gold Coast and Melbourne airports after the airline’s grounding.

The fleet has been repossessed by AIP Capital and the remainder of the planes are also expected to be moved offshore.

Administrator Hall Chadwick told the ABC that the planes’ lessors had indicated they would “continue to enforce their rights” and “seek to reposition the fleet elsewhere”.

On Tuesday the Federal Court heard the lessors wanted the planes returned.

Meanwhile, another week of Bonza flights was cancelled, and customers who were left out of pocket were told they would not be compensated.

Nearly 60,000 customers are already in line to become creditors a week after Bonza’s money problems forced the lease agreement on a fleet of Boeing 737-8 planes to be terminated with all scheduled flights cancelled.

Bonza’s administrator, Hall Chadwick, is reviewing every possible option “to allow the resumption of the company’s operations”. All flights have been cancelled until at least May 15 to buy time.

“This is a difficult situation … [the administrators] will continue in their efforts through various discussions with interested parties, potential investors and other airlines,” a company statement read.

“The administrators expect an additional time will be required in order to facilitate and finalise, if possible, these arrangements.”

More than 300 Bonza employees will remain stood down.

Hall Chadwick previously said insufficient cash flow and funding had stopped Bonza from operating but added that lessors reclaiming planes, forcing the sudden cancellation of flights, was unexpected.

Barrister James Hutton SC, representing Hall Chadwick, said almost 60,000 passengers could potentially become creditors after many of their bookings were cancelled.

Prime Minister Anthony Albanese said the budget airline’s collapse was another example of the difficult industry and more needed to be done to protect consumer rights.

“What we have seen over a period of time is that the aviation industry is a really tough industry and we have seen a range over recent decades of cheap airlines form, keep going for a little while, and not last,” he said.

Opposition Senator Bridget McKenzie said the government should outline how it would help Bonza workers who were out of a job, as well as the affected customers.

-with AAP

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