Liquidator prepares for restructuring, says airline “has high number of staff”

June 5th 2024

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EY, liquidator of collapsed Air Vanuatu, has eliminated 170 jobs from the airline’s payroll to prepare for the sale of the company or recapitalisation. Read More » Air Vanuatu entered voluntary liquidation last month and appointed EY as liquidator. EY’s Morgan Kelly said the restructuring of Air Vanuatu was an “unfortunate but necessary step to give the business the opportunity to bring on board new investors, capitalise on strong domestic and international demand for travel and position the airline for growth”. At a creditors meeting last week Kelly said Air Vanuatu had a high cost base for its size and a high number of staff, minutes of the meeting reveal. At the same meeting, Kelly said a preliminary assessment of the company confirmed it was in significant financial distress. “The process of restoring operations and resolving creditor issues is ongoing, with a three-month timeframe for forming clear plans,” Kelly said.