Business rescue practitioners acting on behalf of South African Airways’ (SAA) LCC Mango Airlines are hoping that the government will soon approve Mango’s sale.
Mango has not operated since July 2021, when it entered into business rescue proceedings. A search for potential investors started in December 2021, attracting 13 expressions of interest, which were narrowed down to a preferred bidder and a reserve bidder.
In his latest update, Mango business rescue practitioner (BRP) Sipho Sono said some of SAA’s board members raised issues with the sale, but these have now been resolved.
An updated application for Mango’s sale was submitted to the minister of public enterprises on Nov. 28, 2022.
“With those issues now out of the way, the BRP anticipates that the minister will consider the application imminently, and if satisfied, approve the disposal,” Sono said.
Agreements for the sale have been drafted and Sono said they will be finalized “in due course,” once the application has been approved by the minister.
South Africa’s Domestic and International Air Services Licensing Councils will also need to approve the change of ownership. On Aug. 3, the Air Services Licensing Council notified Sono that it had suspended Mango’s air service licenses for a two-year period because the airline had not flown in over 12 months.
Mango kept a limited number of administrative staff to provide support during the business rescue proceedings. Their fixed-term contracts have now been extended to March 31, 2023.
“The BRP remains of the opinion that there is a reasonable prospect of rescuing the company,” Sono said.
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