Mango Airlines find potential but a return to the skies remains uncertain
South African low-cost airliner, Mango, has found a potential investor for the grounded airline yet its future remains a mystery. The Department of Public Enterprises told Parliament’s portfolio committee on Wednesday that it was still waiting for a deal to be put on the table. However, South African Airways chairman John Lamola sent a warning about the
Mango airlines find potential but a return to the skies remains uncertain
South African low-cost airliner, Mango, has found a potential investor for the grounded airline yet its future remains a mystery.
The Department of Public Enterprises told Parliament’s portfolio committee on Wednesday that it was still waiting for a deal to be put on the table.
However, South African Airways chairman John Lamola sent a warning about the viability of restarting the airline if the business rescue process continued to drag on.
EWN reports that the Department of Public Enterprises has parted ways with R734 million on the business rescue process of the bankrupt airline so far.
The now grounded carrier owes its creditors R2.8 billion and of this amount, clients are owed R130 million in unused tickets.
Public Enterprises deputy director general Melanchton Mokobe told the committee that after six unsuccessful bids, a possible investor had been identified.
“We are waiting for the business rescue practitioner to submit an application in terms of the Public Finances Management Act for the approval of that investor so that we know who is that investor,” he said.
To the SAA board chairman, Lamola, however, believes even with a new business partner, the airline will struggle to take to the skies again.
“Mango’s licence is suspended for two years, and there’s also a risk that the airline operating certificate of Mango is in a very dubious position,” Lamola said.
Lamola added that Mango did not have the key staff required to satisfy licensing conditions to relaunch the airline.
Meanwhile, media reports surfaced on Wednesday that the state-owned entity, SA Express, will never take off again.
“On Wednesday the South Gauteng High Court granted the final liquidation order, which was handed down without opposition,” reported Moneyweb.
“SA Express was placed under provisional liquidation on April 2020, after the regional airline faced grave financial trouble, which at some point saw it unable to pay employee salaries.
“Several attempts were made to try to rescue the airline from its financial woes, but none were successful.”
Main Image: Mango Airlines/LaraMagazine
