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SAA distances itself from Mango as airline prepares for revival

Budget airline remains part of the group though business rescue is a separate, independent process, flag carrier says

Mango confirmed it is in the final stages of securing an investor to facilitate its return to the skies — almost four years after it was grounded in July 2021. Picture: WIKIMEDIA COMMONS
Mango confirmed it is in the final stages of securing an investor to facilitate its return to the skies — almost four years after it was grounded in July 2021. Picture: WIKIMEDIA COMMONS

SAA has distanced itself from the business rescue process of Mango, stressing it has no oversight over the financial obligations or operational plans of its low-cost subsidiary, including claims, refunds or any financial settlements.

Mango confirmed it is in the final stages of securing an investor to facilitate its return to the skies — almost four years after it was grounded in July 2021.

“SAA has no authority or direct oversight over Mango’s financial obligations, current and future business plan,” SAA said in a statement issued on Wednesday in response to mounting public inquiries about Mango’s relaunch.

Mango remains a subsidiary of SAA, though the two airlines’ business rescue processes are being handled independently. SAA exited business rescue in April 2021, while Mango’s proceedings — initiated four months later — have faced years of delays, litigation, and uncertainty.

According to SAA’s statement, Mango’s business rescue practitioner, Sipho Sono, is finalising a sale and purchase agreement with a selected investor. This deal is intended to enable Mango’s operational relaunch, though few details have been made public.

The investor’s identity, funding commitments, and the timing of a potential return to service remain undisclosed.

Earlier this month Mango urged on customers who had unused tickets or vouchers dating from just before operations were suspended to verify their claims on the airline’s portal. The step is required for travellers to either receive a new flight voucher should the investor transaction succeed, or to lodge a claim as creditors in the rescue process if the deal falls through.

Submissions for verification opened on June 4 and close on September 1, Mango said in a statement. Failure to lodge a claim by the deadline will result in forfeiture.

The process applies only to tickets purchased before July 26 2021 — when Mango ceased flying — for travel dates thereafter and excludes customers who have already been refunded by banks, travel agents, or credit card providers.

Mango’s fate has long been a subject of political and public interest. In 2023, a court ordered then public enterprises minister Pravin Gordhan to decide on the proposed sale of Mango after delays in processing the business rescue practitioner’s recommendation.

The application, brought by Sono, was supported by the National Union of Metalworkers of SA. Gordhan, finance minister Enoch Godongwana and the National Treasury were among opponents to the application.

The case highlighted tensions between the business rescue practitioner, SAA’s board, and the department over the transparency and oversight of the investor process. Gordhan applied for leave to appeal, but it was dismissed in December that year.

In its statement on Wednesday, SAA reiterated its independence from those deliberations and called on affected travellers to liaise directly with Mango for updates.

“SAA remains focused on its own strategic objectives and operational commitments, separate from Mango Airlines,” it said.

marxj@businesslive.co.za

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