Air Vanuatu placed into voluntary liquidation – so what are your flight rights?

This has left hundreds of passengers across the Pacific, Australia and New Zealand stranded as flights are grounded with little notice. The liquidation comes after the airline suffered from technical faults over the last few months.

Liquidation versus voluntary administration

If a company is in trouble, it can be placed under the control of a temporary administrator that works to see if it is viable to save the company. Generally, administration is intended to be a short-term measure that freezes the company’s financial position while the best option for its future is worked out. During this time, creditors can’t take back their goods or take legal action against the company.

By comparison, when a company goes into liquidation its operations are wound up and all its assets sold. Creditors join a line to be paid what they’re owed, with some successfully being paid and some not. Often consumers are near the back of the line with a slim chance of recouping their losses.

So where does this leave you if you’re a ticket holder of Air Vanuatu flights?

Under insolvency law, customers who pay a deposit for a product or service are unsecured creditors. Liquidation for the airline has now been confirmed – but your chances of getting your money back may be slim. File a creditors claim with the liquidator as soon as possible in the hope your claim is prioritised.

There is a silver lining: if you paid for flights using a credit or debit card, you can file a chargeback claim with your bank. If accepted, the chargeback will reverse the money you paid for your tickets and refund it to your account. Each bank has a different time frame for successful chargebacks, but this tends to be within a few months of the original purchase. If you have travel insurance, contact your provider to see what you may be eligible for.

The Vanuatu Tourism office will share updates when they become available.