Air Vanuatu posts VT 296 million profit

AIR Vanuatu has achieved a significantly improved profit of VT296m for the 2017 financial year.

The Chief Executive Officer of Air Vanuatu has announced that it has continued its trajectory of good governance, customer service improvements and financial stability by announcing that following a profit to the airline of VT120m in 2016.

CEO Joseph Laloyer said the airline is now hopeful of securing a second jet in the second half of 2019.

The end of year results were audited by Port Vila accountancy and auditing firm Law Partners.

“We attribute this success to a lot of hard work, re-establishing our codeshare relationship with Qantas, regaining our IOSA certification and pushing on despite the hardships,” said Mr Laloyer.

“In 2015 we were ravaged by TC Pam, however the withdrawal of other carriers gave us higher load factors which is reflected in our 2016 results. Marketing plans put in place after TC Pam and in early 2016 resulted in our 2017 success.

“Our priority in 2018 is to retain our IOSA certification – these results announced today will not be possible without it.”

He said Air Vanuatu’s IOSA safety audit process begins this month.

“It is a crucial time at the airline in the coming months. We want to keep the airline profitable and to do so we need to pass IOSA, which we are confident of doing.”

Air Vanuatu intends to re-invest the profit in the company and is working towards expanding its network to include more Australian and regional ports.

“As CEO, I have been focused on getting the airline back in to the black as well as ensuring we meet international standards for compliance, safety and service. We’ve had solid growth in 2016 and 2017 thanks to this compliance and now it’s time we looked to expand our network.

“I believe we have a corporate responsibility to promote the destination and I am taking the lead role in ensuring Air Vanuatu’s marketing not only ensures our planes are full, but we have the right kind of partnerships in place that ensure Air Vanuatu is getting the best out of our codeshare agreements.

“Based on our current revenue growth and keeping our costs low, I am planning to secure a second jet in the second half of 2019, and looking to expand our network with more frequency to existing ports and several new ports in Australia and the region, with Melbourne at the top of this list.

“Feasibility and research with good planning takes several months, as does choosing the right aircraft to meet the demands of this expansion,” Mr. Laloyer said.

“Air Vanuatu has strong partnerships with airlines in the region that we intend to leverage further ensuring we achieve an equitable contribution and positive results for future ongoing growth.”

He thanked the shareholders and board of directors of the airline for their ongoing support of Air Vanuatu.

“We made a commitment to the government to get the airline back on track. I am delighted with these results and for fulfilling that commitment,” he said.