The Vanuatu caretaker minister in charge of Air Vanuatu, Jay Ngwele, says the government is committed to financially support the struggling state-owned enterprise.
He made this assurance in a statement amid reports that the airline's Boeing 737 is to be repossessed.
Ngwele said Air Vanuatu is assuring the public that securing appropriate aircraft to operate is the top focus for the airline's executive team.
An Air Vanuatu plane taking off Photo: RNZI
He said they have a plan in place which includes continuing the lease on the Boeing 737, and additional planes, as required, to stabilise domestic operations.
Ngwele said an agreed payment plan with the lessor is in place for the Boeing 737.
Last week one of the airline's Twin-Otter aircraft was returned to its owner in PNG.
Our correspondent says he has been reliably informed that it was repossessed, but the company has denied that, saying simply that the lease had expired.
Last week passengers experienced disruptions with the airline now only able to operate two other Twin Otters and an ATR (regional transport airplanes) domestically.
That ATR is due to undergo a major check overseas within weeks.
Provident Fund not keen on loans for troubled airline
The manager of the Vanuatu National Provident Fund says approving any further loans to Air Vanuatu is impossible.
The General Manager of the fund, Parmod Achary, said the fund would be interested in supporting the domestic airline if there is a possibility of separating it from the international airline, creating two entities.
He said with a domestic company, it would be good business and they could make a lot of money from it, if it is properly managed.
The airline is already paying back a loan to the NPF.
The outstanding principal is $US7.7 million.