South African Airways subsidiary, Mango Airlines has completed a chaotic day of flight disruptions and negotiations over owed debt. The low cost carrier was earlier suspended from operating at airports owned by Airports Company South Africa, due to outstanding debt.
A social media statement from the airline reads:
“Mango Airlines apologises for today’s flight interruptions and delays.
We can confirm that our services and all flights are temporarily suspended for today only, due to outstanding payments to ACSA”
Airline representatives spent the day locked in negotiations with ACSA and evidently found a breakthrough with ACSA later announcing a lifting of the afore-mentioned suspension
An official statement from ACSA reads:
“Airports Company South Africa can confirm as reported earlier today that it had suspended Mango Airlines from using its airports due to outstanding debt.
Airports Company South Africa has since lifted the suspension on Mango Airline with immediate effect. This follows negotiations that were entered into earlier between the two entities.
The airline has made part payment today (Wednesday) towards the amount owed to Airports Company South Africa for landing fees, parking fees and passenger service charges.
The airline has made further undertakings to settle the remaining debt. It is under these circumstances that Airports Company South Africa has agreed to lift the suspension on Mango Airline.
The approach of Airports Company South Africa to our business relationship with Mango Airline is consistent with our approach to other airlines based on the terms and conditions entered into contractually, details of which remain confidential.”
ACSA has not disclosed exactly how much is owed by Mango but it is reported that up to 3000 passengers could have been affected by the suspension
Despite being a subsidiary of South African Airways, Mango Airlines has not been under business rescue, but the Airline has been expecting a sum of R2.7 Billion from the R10.5 Billion that was allocated to SAA towards business rescue. However, Mango Airlines has not received the funding from Department of public enterprises and lessors have given the airline an ultimatum which could see the carrier grounded on the 1st of May
The airline is likely to be put under business rescue and has officially made a request that is awaiting approval
