Public Enterprises Minister Pravin Gordhan Faces Key Decision on Mango Airlines Sale. The North Gauteng High Court’s ruling on September 6 has brought Mango’s uncertain future into sharp focus, with a looming deadline of October 6, 2023, for Gordhan to make a pivotal choice.
Mango Airlines, a subsidiary of South African Airways (SAA), has faced turbulence since it ceased operations in July 2021. The airline’s business rescue specialist (BRP) has been waiting for nearly a year for a decision on the consortium’s substantial 326 million ZAR (approximately $17 million) bid from South African Ubuntu Air Services, reports CH-Aviation.
This legal showdown stems from a proposal submitted to Gordhan in September of last year, which called for the sale of Mango Airlines. However, Gordhan’s prolonged indecision jeopardized the deal, causing potential investors to question their commitment. Acting Justice AJ Phooko’s ruling highlighted the minister’s failure to make a decision for about four months, despite repeated requests from SAA and BRP for approval.
Gordhan’s stated need for more information on the prospective buyer, including their business plan and foreign ownership, had become a point of contention. Mango’s BRP, Sipho Sono, argued that allowing the sale to proceed would create competition between SAA and Mango. Nevertheless, Gordhan did receive the executive summary of the business plan.
The situation escalated in February when Sono approached the high court, joined later by the National Union of Metalworkers of South Africa, both advocating for the sale’s approval. The court’s verdict this week unequivocally labeled Gordhan’s inaction as “unreasonable delay,” emphasizing the minister’s constitutional duty to fulfill his responsibilities.
Crucially, the identity of the company seeking to acquire Mango from its parent, SAA, remains a closely guarded secret. The BRPs only disclosed that the owners of the “investment company” are South Africans, leaving observers speculating about the potential impact on Mango’s future.
This 30-day ultimatum sets the stage for a critical decision that could determine the fate of Mango Airlines and its potential impact on South Africa’s aviation landscape.
