It has been established in Vanuatu that a former chairman of Air Vanuatu, Charles Lini, owes the airline 230,000 US dollars.
The board of directors says the debt stems from Mr Lini, who as a son of the late prime minister, Walter Lini, granted charter flights to political associates.
The board has written three letters asking him to settle the debt or he will face legal action.
Mr Lini says 60 percent of the debt was incurred by his political friends, who have promised him to pay for the charters for their parties congresses but to date have failed to do so.
The board is also investigating the alleged fraudulent issuing of tickets worth 50,000 US dollars.
A woman has been sacked by the board amid the fraud allegations and a complaint has been filed with the police.