Air Vanuatu: new A220 fleet to support rapid inbound growth

Vanuatu's aviation market will undergo a major transformation over the next few years as its flag carrier pursues rapid expansion to support a booming tourism industry. Air Vanuatu expects to triple its passenger traffic by 2030 as visitor numbers quadruple.

In Feb-2019 Air Vanuatu placed an order for four Airbus A220s, which are slated to be delivered from 2020 to 2022. The A220s will partially replace larger 737s, but international seat capacity will grow significantly as frequencies to existing destinations are bolstered and new destinations are launched.

The airline also plans to expand its ATR 72 fleet and renew its fleet of small regional aircraft, resulting in significant domestic capacity increases. A larger domestic operation is needed as tourism is developed on smaller islands, aided by infrastructure investments.

Visitor numbers to Vanuatu grew by nearly 30% from 2015 to 2018, driven partially by rapid expansion from China and other Asian source markets. Asia is expected to continue driving rapid growth over the next several years, but as direct flights to Asia are unlikely, Air Vanuatu is focusing on improving connectivity to the main gateways of Oceania.