Airports Vanuatu Limited (AVL) has announced a profit of Vt16 million in the first quarter of 2017.
Chairman of the AVL Board of Directors Bakoa Kaltongga says this is the first stream of profit that would indicate the company is slowly turning around its situation.
“During 2015 and 2016 AVL has been making as loss.
“In fact, during the first quarter of 2016 AVL made a loss of Vt28 million,” he adds.
Kaltongga, who is also First Political Adviser to the Minister of Infrastructure and Public Utilities, Jotham Napat, says the stronger first quarter 2017 performance has been due to company reforms taken by the Board within the last 12 months in introducing new revenue initiatives and cost cutting measures.
“One of the things that had impacted on the performances of AVL in the past is the insistent arguments between Boards that resulted in constant changes to management.
“This led to so many court cases and litigations, which not only cost the people of Vanuatu money but also the company.”
The Board managed to ensure that the issues of former management were resolved and any outstanding payments were completed by AVL.
At the same time it appointed new managers to stabilize management of the company to ensure company performance stabilized.
He adds that the Board has managed to resolve all outstanding issues with respect to previous management and has managed to deploy good and stable managers.
“The Board managed to reduce costs across the board, the biggest of which was salaries, which it managed to reduce the salaries of managers by at least 20%, with the view to reviewing this once the company made a financial turnaround.”
AVL’s main revenue stream is aeronautical fees, which is the landing fees paid by aircrafts that land at Bauerfield and the country’s other airports, followed by non aeronautical fees, which is rental of space in the terminal building and advertising opportunities at the airport terminal by companies.
The plan is to increase non aeronautical fees to increase revenue to be able to maintain a Code E airport terminal, the chairman says.
Kaltongga projects that in the next 12 months, AVL is exploring new avenues to strengthen the company’s performance both financial and efficient administering of its services.
The AVL Chairman thanks management and staff for their efforts in the profitability of the company.