German Aviation Company Panaf conducts due diligence on Air Vanuatu

October 27, 2024 9:38 pm | Posted in Business News | Share now TwitterFacebook

A delegation from the German aviation investment company Panaf is in Vanuatu to conduct physical due diligence on Air Vanuatu (AV3).

Acting Prime Minister (PM) and Minister of Lands Rick Tchamako Mahe confirmed this in Luganville, Santo, yesterday.

He said the government is considering all proposals from interested parties but will remain the majority shareholder in AV3 with 51% of the shares.

Interested parties will be allocated a portion of the 49% stake in AV3, following recommendations from consultancy firm Ernst & Young (EY).

The government shareholders will deliberate and make a decision on all proposals shortly.

Panaf Aviation, under the leadership of Roland Ehrsam, has a history in the aviation sector, notably attempting to revive Thomas Cook Balearics, a subsidiary of the now-defunct Thomas Cook. Their efforts were ultimately thwarted by the global COVID-19 pandemic, leading to the airline’s liquidation. Panaf’s potential acquisitions of smaller airlines, such as Air Alps, did not proceed after assessment.

In the coming weeks, the Panaf delegation will complete its due diligence and assess the viability of its investment in AV3.