5 Sep 2006

Air Vanuatu's financial woes not new - says prime minister's office

9:49 am on 5 September 2006

The Office of Vanuatu's Prime Minister has stated that Air Vanuatu's financial woes is not new and existed during previous governments.

This follows a call by the secretary general of the Union of Moderate Parties, MP Charlot Salwai, for the PM to tell the truth about the financial situation of the national airline.

A spokesperson for the PM, Patrick Crowby, said in 2004 the company showed a loss of 4 million US dollars.

Vanuatu's Council of Ministers wanted the airline's shareholders to appoint a new board, reduce allowances, and get them to come up with a cost cutting plan to reduce costs.