Budget locks in funding for second Air Vanuatu ATR72

By Andrew Curran.

The Vanuatu Parliament passed an appropriation bill this week approving the country’s 2027 budget, which includes substantial spending on airport upgrades and sets aside VUV1 billion (USD8.3 million) to help fund a new ATR aircraft for Air Vanuatu.

Deputy Prime Minister and Minister of Finance Johnny Koanapo delivered the budget during a November 10 parliamentary session in Port Vila. Vanuatu’s financial year aligns with the calendar year.

He announced funding for the previously disclosed ATR acquisition, which would become Air Vanuatu’s second ATR 72-600. Air Vanuatu has already issued a request for proposal to supply the aircraft, which it hopes to have delivered by the end of the first quarter of 2027.

The budget includes a total spending package of VUV91.74 billion (USD762.94 million). Almost 1.1% of the government’s total spending next year will go towards the ATR 72.

As with the two DHC-6-300 Twin Otters delivered to Air Vanuatu this year, the ATR will be owned by the government and leased to Air Vanuatu through a government-owned entity called Vanuatu Aircraft Leasing Company.

Also included in the 2027 budget is VUV640.7 million (USD5.33 million) for upgrades to North Ambrym and Maewo (MWF) airports. The government will spend VUV341.8 million (USD2.84 million) on concreting the currently gravel runway at North Ambrym, located on Ambrym Island, and VUV298.9 million (USD2.49 million) on sealing the runway at Maewo, located on the island of the same name.

The Vanuatu Government says the airport upgrades will improve connectivity for local residents and, importantly, allow easier access to and from the islands during emergencies.

This week’s budget is Vanuatu’s largest since it gained independence in 1980. The country is home to around 345,000 people spread across 65 inhabited islands, making air travel a vital part of its infrastructure.

Photo: Air Vanuatu
Contact the writer: andrew@aerosouthpacific.com