Air Vanuatu must be rebuilt differently, no repeating past: Koanapo
January 21, 2026 10:23 pm | Posted in Business News | Share now TwitterFacebook
By Anita Roberts.
After years of financial and operational challenges leading to liquidation, Air Vanuatu must be rebuilt differently with strong management principles and sound business practices, ensuring the undisciplined past is not repeated.
The Deputy Prime Minister (DPM) and Minister of Finance, Johnny Koanapo, stressed this during the arrival of the first government-owned Twin Otter aircraft, YJ AV15, in Port Vila yesterday.
He said the rebuilding of the national airline must not follow the same story, where management remains undisciplined and the government uses it without oversight.
Koanapo, who is also the Acting PM, announced the plane is expected to be leased to Air Vanuatu, with plans to return dividends to the government.
He challenged Air Vanuatu management, saying that if the National Bank of Vanuatu (NBV) can generate dividends, the airline should have no excuses in the future once it is fully operational and profitable.
He said the government has allocated VT1.1 billion to purchase two Twin Otters, with the second one scheduled to be delivered by March this year.
Apart from the Twin Otter aircraft, Koanapo announced that the government is considering an ATR42 by 2030 to further strengthen the domestic fleet.
Built by De Havilland Canada, both Twin Otter aircraft are designed to adapt and operate in the demanding conditions of Vanuatu’s terrains and airstrips.
“It’s built for our country,” said Captain Robin Deamer, who delivered the YJ-15 yesterday. He said the aircraftis ‘lighter’ compared with other models, and will enhance cargo capacity and services with increased payload.
Mr. Deamer is also the Chairman of the Air Vanuatu Board. Following his appointment to the board, he went to the United States in person to ensure the aircraft were built to Vanuatu’s specifications.
Decorated with Vanuatu’s symbols—the coat of arms, pig tusk, and flag—YJ-15 is named ‘Vanua Endeavour’, representing the country’s identity and aspirations.
The Acting PM said the government’s focus is on domestic connectivity, because at the heart of the national airline is the goal to link the nation.
“Air transport is a lifeline for an island nation like ours, linking families, communities, essential services, and economic activity across the archipelago,” he said.
“The acquisition of these two Twin Otter aircraft represents a strategic decision to restore inter-island connectivity and place Air Vanuatu on a more stable and sustainable footing.”
Koanapo also mentioned plans to strengthen Air Vanuatu and roll out an airport rehabilitation program across the country to raise safety standards, improve accessibility, and support tourism, trade, and development.
Chief Executive Officer (CEO) of the Vanuatu Tourism Office (VTO), Adela Aru, said the arrival of the new aircraft after the liquidation period will restore confidence among tourism businesses and connectivity for visitors.
She said the minimal service previously provided by Air Vanuatu led to limited destinations, as visitors arriving in Port Vila could not travel to other islands.
The arrival of the aircraft marks a positive step towards restoring reliable service, the CEO added.
Koanapo was accompanied by state ministers, Members of Parliament for Efate, and senior government officials to welcome the new aircraft to Vanuatu yesterday.
