Airbus has confirmed that failing to finalize an aircraft purchase agreement often leads to the forfeiture of pre-delivery payments. This statement brings new concerns to the surface regarding the Vanuatu Government’s controversial aircraft deal, which amounts to over VT2 billion (approximately US$16.51 million).
In a response to the Daily Post, an Airbus representative refrained from discussing the specific details of the Vanuatu Government’s arrangement due to company policy but emphasized that any default in contracts or failure to take delivery of an aircraft incurs substantial costs for manufacturers. This general practice suggests that pre-delivery payments would typically be non-refundable.
This clarification comes at a time of increasing public scrutiny and political tension surrounding a substantial deposit allegedly paid by the Vanuatu Government in 2019. The deposit was intended for the acquisition of aircraft that were never delivered, largely due to various interferences.
Back on February 26, 2019, Airbus announced that Air Vanuatu had selected the Airbus A220 for fleet expansion, marking the airline’s first order with Airbus as the inaugural customer of the A220 in the Pacific region. Derek Nice, the former CEO of Air Vanuatu, described this investment as a commitment to advanced technology, passenger comfort, and environmental sustainability.
Industry experts assert that pre-delivery payments, which can reach up to 30% of the aircraft’s total price, are standard practice to reserve production slots and initiate custom builds. If Vanuatu did indeed make such a significant deposit and ultimately failed to proceed with the deal, the resulting financial loss could be among the largest in the nation’s history.
Despite these concerns, the Government of Vanuatu has recently reassured that the VT2 billion deposit remains secure, expressing optimism that discussions regarding the aircraft purchase are ongoing. This reassurance is crucial as the government aims to highlight its commitment to restoring a stable aviation sector in the region.
Overall, the government’s proactive stance and engagement in dialogue regarding this aircraft deal reflect an underlying hope for resolving current challenges in Vanuatu’s aviation industry. Strengthening air connectivity not only paves the way for restoring domestic air services but also fosters broader economic growth and stability in the region.
Leave a comment