A DHC-6-300 Twin Otter turboprop that had been scheduled to leave Vanuatu for redelivery to its owner, Hevilift (PNG) (Mount Hagen), due to lease non-payment, is still in the country, the Vanuatu Daily Post reported.

Sources told the newspaper that Air Vanuatu (NF, Port Vila) owes Papua New Guinea-based Hevilift just over VUV40 million vatu (USD347,000) for failing to pay the lease. The lessor had consequently demanded the return of the aircraft.

The aircraft had been inspected and was ready to depart on the morning of May 18, but at a meeting the day before, the shareholders of the state-owned carrier including the ministers of finance and infrastructure met with a representative of the lessor to say that the government was committed to settling the outstanding bill, as it wanted to keep the twin-turboprop in Vanuatu.

Ministry of Infrastructure & Public Utilities spokesman Antoine Malsungai confirmed the government’s position to the newspaper - for Air Vanuatu to retain the aircraft for services domestically. The government will work on repaying the outstanding amount and will continue with the leasing arrangement, he assured.

According to the ch-aviation fleets module, Air Vanuatu currently operates three DHC-6-300s, two of which are owned. The third one, YJ-RV10 (msn 679), is leased from owner and manager Capstone Aviation LLC, which according to online company data is a subsidiary of Singapore-based Hevilift Group. Air Vanuatu’s fleet also includes one ATR72-600 and one B737-800, both of which are leased, as well as two BN-2s.

The Vanuatu government said recently that it was committed to making its struggling flag carrier profitable again. Last November, CEO Atu Finau said the airline was finalising the acquisition of two DHC-6-400s and would lease an additional B737 in the first quarter of 2022.