Air Vanuatu's chief executive, Joseph Laloyer, says the airline will undergo an extensive restructuring next year with the help of international aviation experts.
An Air Vanuatu plane taking off Photo: RNZI
The project comes after the suspension of the company's International Air Transport Association's Operational Safety Audit re-certification.
It is expected it will be re-installed following the restructuring.
Mr Laloyer says 2015 saw unprecedented challenges for Air Vanuatu through Cyclone Pam and a consequential loss in income.
He says the world's leading aviation audit body Aviation Quality Services, part of the Lufthansa Group, will lead the process.
The CEO says the restructure would mean staff cuts but ultimately a more efficient operation.