AIRLINES

Mango Airlines Loses its Operating Licence Due to Inactivity

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The Air Services Licensing Council on August 3 suspended Mango’s licenses “for two years, effective immediately, as Mango has not operated the licensed air services for an uninterrupted period exceeding 12 months”.

The airline has not operated flights for over a year now with hopes of getting a new investor to resume operations now seem to be taking a different turn.

A big blow to the revival of the stricken state-owned airline which in the view of the council, Sipho Sono – the business Rescue practitioner – had failed to Mango’s non-compliance with the licence conditions.

All I can say is that it is a very strange decision that does not consider the lack of competition in the domestic aviation market, with ticket prices going through the roof. The decision was communicated to me late Friday, so I still need to consider it carefully and decide the next steps,” Sono told Fin24 on Sunday afternoon.

The Department of Public Enterprises indicated in the past that Mango cannot resume operations until it secured an investor. Now, when it is close to finalising the deal, the Department of Transport decides to shut Mango down.”

A report dated August 3, 2022, suggested that one of the bidders interested in the low-cost carrier had been able to present proof of funding.

However, as things stand now, Mango has been mothballed because SAA – which has since exited administration as a substantially reduced airline – decided to sell off the wholly-owned subsidiary and does not form part of the deal that will see the Takatso Consortium obtaining a 51% stake in SAA.

Mango entered business rescue, a form of bankruptcy proceedings, in July 2021 and suspended flights at that time because of unpaid air traffic bills. It had previously been forced to suspend flights just a few months earlier, due to outstanding payments to Airports Company South Africa (ACSA).

The company could be wound down should it not receive suitable offers as prescribed in its business rescue plan.

 

Featured Image: @aviator_nic/ Airspace

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