19 Mar 2013

Air Vanuatu technically insolvent, says CEO

1:23 pm on 19 March 2013

The chief executive of Air Vanuatu, Jean Paul Virelala, says the airline has been technically insolvent for the past five years and has only been able to operate through government guarantees.

He has compiled an Air Vanuatu Recovery Plan for the government.

Mr Virelala says in order to resolve the problems, it is important to understand what went wrong.

He says since 2007, Air Vanuatu has faced a severe financial setback and an ongoing cash flow crisis due mainly to the wrong strategic decisions being made by unqualified, unskilled and inexperienced but highly paid staff.