VANUATU'S government has identified structural weaknesses in its domestic aviation sector, including the absence of a unified strategy and weak airline management systems, local media reported citing a newly released technical report.
The report found the sector operates without coordinated planning, resulting in inefficiencies and unreliable air services. It was commissioned by the government in 2025 and funded by New Zealand.
The review highlighted operational shortcomings at Air Vanuatu (NF, Port Vila), including limited accountability structures, inadequate information systems, and a lack of usable cost data for route planning. It also noted the absence of a formal business plan, constraining the government's ability to assess funding needs.
The airline had previously entered liquidation following the combined impact of the COVID-19 pandemic, a 2024 earthquake, and ongoing operational disruptions. Capacity has remained below 2019 levels, and the carrier has continued to face funding shortages since exiting the process.
The report recommends urgent reforms, including the development of a five-year business plan, improved governance, and clearer separation of responsibilities between the board and management under the country's Commercial Government Business Enterprise Act.
Prime Minister Jotham Napat said in a government statement that the findings confirm longstanding concerns, adding: "There is no business plan, no usable cost data, and an over-reliance on costly wet leases. That is not sustainable."
The report concludes that with improved management systems, stronger oversight, and increased capacity, the airline could return to profitability and better support national connectivity and economic growth.
ch-aviation has reached out to Air Vanuatu for comment.
Source: Air Vanuatu