Air Vanuatu in Talks for 49% Minority Stake Sale to Boost Operations

Air Vanuatu, the national airline of Vanuatu, has entered negotiations to sell a 49% minority stake to potential investors, with a focus on revitalizing its financial health and operational reach. The Vanuatu government plans to retain a controlling 51% majority, ensuring national oversight while allowing for strategic investment and expertise from private stakeholders. This move reflects the government’s goal to stabilize Air Vanuatu after recent financial setbacks and leverage international partnerships to expand the airline’s capabilities.

One of the interested investors is PANAF Group, whose Vice Chairman, Roland Ehrsam, confirmed ongoing discussions. Ehrsam noted that PANAF is prepared to bring both capital and operational expertise, focusing on improving Air Vanuatu’s domestic and regional network. Additionally, the partnership would include initiatives to enhance local training and skill development programs for the Vanuatu aviation workforce. This aligns with the airline’s objective to strengthen its foundational infrastructure and meet the connectivity needs of island communities across Vanuatu and the Pacific region.

Deputy Prime Minister Matai Seremaiah Mawalu expressed optimism about the potential partnership, emphasizing that the collaboration could drive economic growth, improve transport accessibility, and bring industry know-how to Vanuatu. The investment is expected to play a key role in expanding Air Vanuatu’s route network and building sustainable, long-term service solutions for the nation.

This comes after a turbulent period for Air Vanuatu, which suspended operations and entered liquidation in early 2024 due to mounting financial challenges. Following the appointment of Ernst & Young as liquidators, the airline was sold to a holding company managed by the foreign ministry, enabling it to exit liquidation and resume limited domestic services. This new effort to attract minority investment marks a crucial step in Air Vanuatu’s restructuring strategy, aimed at supporting long-term growth and economic contributions to Vanuatu.