Vanuatu's domestic airline, Vanair, is considering selling one of its aircraft to improve cash flow problems caused by large debts to Air Vanuatu and the National Provident Fund.
The Vanuatu Daily Post reports that Vanair has made debt repayments to Air Vanuatu of more than 81-thousand US dollars a month and also has to repay a million dollar loan from the NPF.
Figures released by the Director of Finance, Robert Menzies, show that overall the financial state of the airline has improved although it is still losing 40-thousand dollars a month.
Vanair has five aircraft and is looking at selling a Twin Otter to reduce insurance costs.
It is also considering selling another aircraft and leasing it back to cut costs.
And the airline is negotiating with the NPF, Air Vanuatu and BP Oil to lower debt repayments and overheads.