Air New Zealand said it will not resume flights to Vanuatu until it is completely satisfied the airport’s runway is repaired to the highest international standards.
The Kiwi carrier pulled out of flying to Port Vila airport along with Virgin Australia after the deteriorating standard of the runway.
The runway’s poor state was further damaged after the pacific nation was buffeted by Cyclone Pam last year.
The airport has made temporary repairs to the runway but Air NZ said this is not sufficient.
"The one-year lifespan of these repairs does not provide sufficient operational certainty to build a sustainable service on," an Air NZ statement said.
"Air New Zealand would only consider resuming services once a permanent solution for the runway at Bauerfield airfield has been fully funded, designed to a satisfactory standard and contracted to a competent contractor."
It is a blow to the nation which is still recovering after the cyclone.
Tourism accounts for up to 65% of Vanuatu’s economy, according to Australia-based Lowy Institute foreign policy unit.
The airport still handles daily flights by Air Vanuatu and services from Fiji Airways, New Caledonia’s Aircalin and Air Niugini.
