Air Vanuatu Seeks Bankruptcy Protection, Cancels International Flights Amid Financial Struggles

In response to financial difficulties, Air Vanuatu, a state-owned airline based in the South Pacific, has canceled all international flights for the next four days and is contemplating seeking bankruptcy protection through voluntary administration, a local variant of Chapter 11 bankruptcy in the United States. The airline’s administration revealed that international flights will remain suspended until further notice, as the Vanuatu government considers the feasibility of appointing Ernst & Young, an international consulting firm, to evaluate alternative solutions. This decision has left thousands of passengers stranded, causing inconvenience and disruption to their travel plans.