Minister Pravin Gordhan’s indecisiveness hobbles rescue plans at Mango airlines
|Published
The South African government is Mango’s main shareholder. Photo: Matthew Jordaan
Another South African Airline has been placed in further jeopardy.
The business rescue practitioner (BRP) for Mango Airlines has sounded alarm bells, saying the rescue plan might have to be abandoned as the government was holding the BRP back.
The government is Mango’s main shareholder.
The BRP said Public Enterprises Minister Pravin Gordhan had not submitted an application for approval to dispose of SAA’s shares in Mango.
In July 2021, Mango Airlines went into voluntary business rescue after it was grounded due to outstanding payments to Air Traffic and Navigation Services.
At the time, acting chief executive William Ndlovu said: “We plan to resume normal operations as soon as possible. We ask for calm and patience as we navigate these challenges. We will update the public as soon as possible. We apologise in advance for the inconvenience caused.”
Business rescuer Sipho Sono announced that the SAA subsidiary would be up for bids from private entities willing to take over the airline.
Due to Gordhan not making a decision on the shares, the BRP said: “Given the sudden turn of events, there is now the possibility that the transaction or investor process… may have to be abandoned and for the BRP to implement the wind-down process that is already incorporated in the adopted BR Plan.
“The BRP remains of the opinion that there is a reasonable prospect of rescuing the company, or that the BR proceedings would result in a better outcome for creditors and the shareholder of the company than would otherwise be achieved should the company be placed in liquidation.”
The country’s airline industry has been hit with many liquidations over recent times, with Comair (Kulula) and SA Express being shut.
BUSINESS REPORT