The Chief Executive Officer of Air Vanuatu, Joseph Laloyer, has been dumped by the company's Board of Directors.
The Daily Post says Mr Laloyer could have been terminated following the findings of a Commission of Inquiry into allegations that Air Vanuatu planes were allowed to fly during a cyclone.
Mr Laloyer says he is surprised at the termination and will appeal against it.
He says he has succeeded in reducing the airline's debt significantly.
He is reported to have been replaced by chief pilot Peter Fogarty, a member of the commission of inquiry.