Gov't takes control of Air Vanuatu after sacking its board

The government of the Pacific island of Vanuatu has taken control of Air Vanuatu after firing its board of directors in an effort to save the state-owned airline from bankruptcy. “The situation of the airline is very, very critical, that’s why we took this decision,” said Finance Minister Johnny Koanapo. He said the country’s Council of Ministers on March 11 had terminated the tenure of the board with immediate effect following a decision last month by the state-owned airline’s shareholder representatives. He confirmed that CEO Atu Finau remained in office to manage the airline, but the Ni-Vanuatu government had taken control of the Board and the Finance Ministry had taken over the financial control of the company, keeping close watch over spending. He said the government intended to restructure and partially privatise the company to reduce its heavy reliance on state coffers, as was the case at present. “We anticipate that there will be very little control or interference from the government (in the airline) in the near future,” he said.<br/>