Air Vanuatu cancels flights and considers bankruptcy protection

MELBOURNE, Australia -- Air Vanuatu announced Thursday the airline had cancelled international flights for four days and was considering bankruptcy protection for the South Pacific state-owned carrier.

It said international flights were cancelled until Sunday and flights after that day were “under review.”

“The Vanuatu government is now considering placing Air Vanuatu into voluntary administration,” a statement said, referring to a local equivalent of a U.S. Chapter 11 bankruptcy.

“The international firm Ernst & Young has been appointed to assist the Vanuatu government in reviewing available options and put forward recommendations,” the statement added.

Thousands of travelers have been left stranded by the cancellations.