Air Vanuatu filed for bankruptcy protection on Friday after it canceled all its international flights, which left thousands of passengers stranded.

The airline's headquarters are located at Air Vanuatu House in the capital city of Port Vila in Vanuatu, a country in Oceania. It serves as the official flag carrier of Vanuatu and flies to destinations in the South Pacific, including Australia, New Zealand, and New Caledonia.

Air Vanuatu Cancels International Flights This Week

According to The Associated Press, Air Vanuatu on Wednesday canceled more than 20 flights to and from Auckland, New Zealand, and Sydney and Brisbane, Australia for the rest of the week because of extended maintenance requirements for its planes.

Morgan Kelly, Justin Walsh, and Andrew Hanson of Ernst & Young Australia were reportedly named liquidators in a process similar to Chapter 11 bankruptcy in the United States. 

The liquidators promised to conduct safety and maintenance inspections before returning to regular operations. The first creditors' meeting is coming up soon. According to the Guardian, the airline's current management staff would remain in place.

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Air Vanuatu as a Crucial Company in the Nation

In a statement, Morgan Kelly said that Air Vanuatu is a strategically important business to the Republic of Vanuatu and critical to the nation's people.

The AP reported that tourism is a major economic sector in Vanuatu, generating 40% of the country's gross domestic product. Even though the airline industry faces challenges, Kelly said they remain optimistic about the airline's future and are committed to ensuring the survival of the nation's carrier.

The company assured affected passengers that they would be notified of any inconvenience and be allowed to rebook their flights once operations were back up and running.

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