1 Feb 2010

Vanuatu Government subsidises flights out of Santo's international airport

6:36 pm on 1 February 2010

The Vanuatu Government was last week forced to inject nearly half a million US dollars into Air Vanuatu to subsidise its flights to Pekoa international airport on Santo.

Last year, the Government had opened direct flights from Santo to Australia to encourage the tourism industry.

But last month Air Vanuatu decided to cancel the direct flights because they were unprofitable.

That decision sparked protests from Santo business operators but a threatened demonstration was called off after the Government committed to maintaining the flights.

The Government has also called on the businesses to help to promote the island.