The Air Vanuatu House in Port Vila, Vanuatu, is where the airline's headquarters are located. It is Vanuatu's national airline and serves destinations in the South Pacific, Australia, New Zealand, and New Caledonia. Bauerfield International Airport in Port Vila serves as its primary base.
After Vanuatu gained independence from the United Kingdom and France the year before, Air Vanuatu was established. A five-year agreement was made with Ansett Airlines to provide aircraft and operating personnel, and assistance was sought. Additionally, Ansett acquired a 40% stake in the new airline, with the Vanuatu government holding the remaining 60%. On September 5, 1981, the first Air Vanuatu flight, a McDonnell Douglas DC-9-31 operated by Ansett, left Sydney for Port Vila. The DC-9 was replaced by a Boeing 737-200 operated by Polynesian Airlines in May 1982; In October of 1985, an Ansett 737-200 took its place.
 The agreement with Ansett expired in March 1986 and was not renewed, which resulted in the airline being grounded.