Vanuatu’s Aviation Future: Will Airbus A220 Funding Take Flight?

The Vanuatu Government has confirmed that the funds allocated for acquiring Airbus A220 aircraft for Air Vanuatu are secure and will be returned once domestic air service challenges are addressed. A total of USD 20 million, reportedly sourced from the Capital Investment Immigration Plan (CIIP), was designated for the airline’s fleet expansion, specifically for the potential purchase of up to four Airbus A220 aircraft.

Government Public Relations Officer Kiery Manassah emphasized that the funds remain with Airbus and will be accessible once the government resolves its domestic aviation service plans. He expressed confidence in the safety of the investment, stating that updates will be provided as developments unfold.

This assurance comes on the heels of a Prime Ministerial request for an investigation into how funds raised through the CIIP were handled. Allegations have surfaced regarding the use of these funds specifically for the Airbus purchase. An informant indicated that these payments were meant to enhance Air Vanuatu’s operational capabilities, aimed at improving connectivity throughout the region, until the former board invalidated the order under previous leadership.

Currently, Airbus is withholding the reassignment of the funds pending the establishment of a stable government or the appointment of a credible aviation body to manage the project effectively. A proposed solution includes bringing in a reputable airline, such as Fiji Airways, to oversee the aircraft project, which could lend the necessary stability to facilitate the release of the funds.

Additionally, the introduction of a Department of Foreign Affairs and Trade (DFAT)-backed domestic operation, initially slated to be run by Fiji Airways for six months, appears to be a timely approach to enhance connectivity under a new brand, potentially named VanuatuLink. This initiative brings a practical vision that could cater to the domestic travel needs of the islands.

The government’s proactive measures and planned collaboration with reputable carriers highlight a commitment to restoring efficient air services in Vanuatu. Strengthening domestic and international connectivity is crucial for boosting tourism and economic growth, making these developments a hopeful turn for Air Vanuatu and the broader Vanuatu aviation sector.