South African Airways Acting CEO Thomas Kgokolo says budget carrier Mango Airlines will enter Business Rescue, a form of bankruptcy protection
The SAA low cost subsidiary has in recent months been faced with delays in payment of salaries but the airline hopes to resolve the issue in the coming weeks with the receipt of crucial funding as part of a R2.7 billion bailout given to SAA subsidiaries by the government
Workers’ unions NUMSA and the Mango pilots association are planning to take the airline to court in a bid to address unpaid salaries among other issues. The Unions believe that the political will to take Mango into business rescue has been lacking despite recent remarks from the SAA acting CEO according to Numsa’s Phakamile Hlubi-Majola as reported by moneyweb. The Unions have taken the extra-ordinary step and filed for the airline to be taken under business rescue.
Of the 2.7 Billion allocated to SAA subsidiaries, 819 Million is meant to go to Mango Airlines. However, these funds are yet to be released by national treasury
One of Mango’s creditors has filed a liquidation application adding to the airline’s woes. The airline has 740 jobs on the line.
“As unions we cannot sit by and watch Mango collapse. We have a pending liquidation that’s about to be heard and, as unions, we are taking a stand” said Zazi Nsibanyoni-Mugambi of the South African Cabin crew Association
“We are aware at a group level there are delayed salaries and what we can say is the board and the shareholder have agreed that Mango will go into business rescue,” said Kgokolo speaking to eNCA news.
“We are currently in consultation with our key stakeholders in terms how we can manage that particular process,” he added
Meanwhile, the acting CEO expects the legacy Carrier SAA to secure its air operator certificate (AOC) in the next few days, as it eyes resumption of flights in August.
“If the AOC is confirmed and the operating licence confirmed this week, then what we plan to do is as early as August we want to get back into cargo. Cargo will go in first before we talk about the passenger restart date.”
”We are meeting this week with the key shareholders to do the final touch up and then we’ll issue an update,” Kgokolo says.
Photo: @aviatornic
By Victor Shalton Odhiambo
