Vanuatu’s Prime Minister Jotham Napat returned from France last month affirming the revival of a long‑stalled VT 2 billion Airbus A220 procurement –a deal first struck in February 2019 as part of a planned fleet expansion of the troubled national airline, Air Vanuatu. He credited Deputy Prime Minister Johnny Koanapo, who led negotiations in Toulouse, with securing assurances that Vanuatu had not forfeited its pre‑delivery deposit, a breakthrough widely hailed as critical to restoring air connectivity and economic growth.
This reaffirmation comes against a backdrop of fiscal hardship. Air Vanuatu was placed into voluntary liquidation in May 2024, owing over US $110 million and with only two functional turboprop planes remaining after its Boeing 737-800 was repossessed. Critically, the airline’s future hinged on recovery of the US $17-20 million pre‑delivery payments made to Airbus –payments industry observers and Airbus itself warned would typically be non‑refundable.
The 2019 inquiries had even concluded that the A220 order was unsuitable for a carrier of Vanuatu’s size, citing a lack of trained crew and hangar capacity, leading to official cancellation of the order in 2022, after a change in government. Airbus consistently insisted that contractual terms meant any default would result in forfeiture of PDPs, and there was no guarantee of a refund.
Despite these risks, the government has insisted the funds remain safe and negotiations continue. The aerospace manufacturer reportedly holds the money in escrow, pending Vanuatu’s resolution of airline governance and financial clarity. During the July visit, PM Napat signalled readiness to pursue legal avenues, warning that Vanuatu would sue Airbus if refunds were denied, but emphasised diplomacy remains the first recourse.
The Airbus deal revival represents more than fleet renewal. It reflects Vanuatu’s strategic push to rebuild flag carrier credibility, restore international routes, and leverage its infrastructure ties with France. If ultimately successful, the deal could once again position Vanuatu as a Pacific aviation link for tourism, labour flows, and regional trade. But the outcome remains carefully balanced on ongoing negotiations and whether Airbus ultimately recognizes Vanuatu’s long‑held claim.
