The newly appointed Chief Executive Officer for Air Vanuatu says he has a tough job to revamp the airline.
Terry Kerr says he has to consolidate operations and is promising more redundancies following the merger with the domestic carrier, Van Air.
Mr Kerr's appointment comes after the sacking of the former CEO, who along with the former marketing manager, is suing the airline for tens of millions of vatu, claiming wrongful dismissal.
The airline also faces two inquiries.
One has been ordered by the government to look into the previous management while the new board intends to hold its own internal investigation.
Mr Kerr says in the last financial year, the airline lost almost 2 million US dollars.
"I have inherited some problems, and my whole focus at this stage is basically to overcome the financial losses that have been incurred and to move forward with the national carrier and the domestic as one entity."
Terry Kerr, the CEO of Air Vanuatu.