Air Vanuatu has sought bankruptcy protection following the cancellation of all its international flights, leaving many travelers stranded. The airline cited extended maintenance requirements as the reason behind its decision to cancel more than 20 flights to and from Sydney, Brisbane, and Auckland for the entire week.

Ernst & Young Australia appointed Morgan Kelly, Justin Walsh, and Andrew Hanson as liquidators, marking a move akin to Chapter 11 bankruptcy in the US. They emphasized that safety and maintenance checks would precede the resumption of normal operations. Despite the challenges, they expressed optimism about the airline's future and vowed to ensure its continuity.

Air Vanuatu, crucial to the Republic of Vanuatu, operates four aircraft, including a Boeing 737 and three turboprop planes. Tourism, a significant contributor to Vanuatu's GDP, has been affected by the airline's disruption.

Efforts are underway to assist affected travelers, with discussions ongoing with airlines like Virgin Australia and Fiji Airways. The Vanuatu Tourism Office apologized for the inconvenience and assured updates on the evolving situation.

The airline's challenges stem from labor shortages, escalating operating costs, high interest rates, and the impact of tropical cyclones on tourist numbers. Liquidators stated they would explore various options to resume operations swiftly, potentially involving partnerships or a sale process.

Travelers like Sally Witchalls, caught off guard by the flight cancellations, find themselves navigating uncertainties, as their travel insurance does not cover instances of airline bankruptcy. With the situation evolving, affected passengers are left to manage accommodations while awaiting updates on Air Vanuatu's status.

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