Mango airlines restart in jeopardy

Mango Airlines’ restart is in jeopardy. Image via @FlyMangoSA / Twitter

More woes: Mango months away from flying again…if at all

State-owned low-cost carrier Mango Airlines will not take to the skies in December as the original business rescue plan needs to be amended.

Mango airlines restart in jeopardy

Mango Airlines’ restart is in jeopardy. Image via @FlyMangoSA / Twitter

At a recent meeting of Mango’s creditors, the airline’s business rescue practitioners were advised that the original rescue plan must be amended and that Mango would not resume flights as set out in the business rescue plan. 

Mango’s business rescue practitioner (BRP) Sipho Sono proposed that Mango receive the outstanding R719 million owed to it as part of a package approved by parliament, to allow the airline to resume flights during the busy December holiday season. This would have made the airline more attractive to potential buyers.

When drawing up the original rescue proposal, South African Airways (SAA) informed Mango’s rescue practitioners that Mango would no longer form part of its group, meaning that a private buyer would have to be found for Mango for it to continue operations.


At a meeting on Monday, SAA said it wants Mango’s original rescue plan to be amended, to allow the airline to resume operations only once a suitable investor has been identified.  

As a result, Sono said the airline would have to be mothballed for what might be an extended period as it will take time to find a suitable buyer. The fact that the airline is not currently operational would make Mango even less attractive to potential buyers.


Sono said that South African Airways (SAA), Mango’s sole shareholder, had motioned for the meeting with creditors to be adjourned in order for the amendments to Mango’s rescue plan to be effected.  

“After deliberation, it was agreed that the meeting should indeed be adjourned for a maximum of 15 business days to consider and effect the proposed amendments and thereafter reconvene the meeting of creditors in order for the affected persons to consider and vote on the amended plan,” Sono said.


Mango’s business rescue practitioners had already initiated a process inviting employees to apply for voluntary severance packages (“VSP”) as part of mitigating the need for retrenchments under section 189 of the Labour Relations Act.

Sono said the amended business rescue plan would result in more retrenchments for Mango staff. Initially, around 300 of its 700 employees were to receive voluntary severance packages.

“This aspect of the plan will continue, and the BRP was assured by SAA and the DPE that funds will be released during the course of this week, or at worst early next week, to implement the VSPs,” Sono said.


Mango intends to issue vouchers to travellers with unflown tickets, for use once it resumes flights.  Sono said he could not commit to a specific date from which these would be valid as the airline is not operational.

“Customers are encouraged to opt for an opportunity to use their tickets once Mango resumes operations. Those customers wishing to convert their tickets to claims will regrettably receive the same dividend that is offered to concurrent creditors,” Sono added, quoted in Mybroadband.