Air Vanuatu's marketing manager, Manu Carlot, has resigned.
It follows the airline's sacking of 26 ground staff and a union threat to stage further industrial action.
Mr Carlot says he's resigned for personal reasons, but he says there are funny things happening in the firm.
The chief executive, Terry Kerr says Mr Carlot has chosen to resign on amicable terms after ten years in the company.
His resignation has brought former marketing manager, Joseph Laloyer back into his former post.
Mr Laloyer had been dismissed by the board but he successfully contested this in court.
Air Vanuatu is one of the smallest airlines in the world but it has 30 directors.