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Daily Maverick
15-07-2025
- Business
- Daily Maverick
After the Bell: Can anyone make Mango Airlines great again?
SAA is back in the fray, while Mango Airlines is still trying to get out of business rescue — but why would anyone want to enter this space now? Despite the fact it is usually long, boring and tiresome, flying can still exert a powerful pull on my imagination. I think it must be because, while you are sitting in a large metal tube with about a hundred people you've never met, the world literally changes around you. It's the glint of the sun off the wing, the powering through the fluffy cloud, the squares of blue as the pools of Boksburg do their thing, then the line of the Orange River, the incredible mountains of the escarpment, a quick hop over the sea and the glorious green of the Western Cape. Despite that magic, a flight can often be a chance to do some work quickly, to get something done in the one place where no one can bother you. It's a kind of end of innocence, that feeling, in a way. In our market we've seen quite a few changes. South African Airways (SAA) is now back in the fray, while Mango Airlines is still trying to get out of business rescue. Fin24 reported earlier today that despite a court ruling preventing the business rescue practitioner at Mango, Sipho Sono, from selling the airline to an investor, that investor was still keen to go ahead. News24 has suggested that a company called Ubuntu Air Services is pretty keen on buying Mango. There are so many questions here. Professional and competent Firstly, surely a business rescue practitioner, as professional and competent as they must be, does not get to decide to sell something that belongs to the government. It belongs to all of us, and those who are democratically elected should decide (as likely as they are to repeat silly mistakes). But secondly, I just don't get why someone would want to enter this space now. It seems incredibly competitive. FlySafair was able to keep its planes, and crucially its pilots, flying during most part of the Covid pandemic. As a result, its pilots had kept their hours up and could return to normal service pretty quickly. Because SAA was shut down and almost mothballed during that time, it took a long time to recover. I've found that, generally speaking, FlySafair is incredibly professional. I know companies that will book only with them because they really do seem to keep to time. And for businesses, nothing else matters. They'll pay the extra (if there is extra to pay) just for that reliability. That said, a few months ago I went on an SAA flight for the first time in years. Literally years. In 2017, my wife was going on a work trip to France and I warned her not to fly SAA at all. She was quite surprised by my emotion on the issue. But I pointed out that it was about to go bankrupt, and could run out of money to buy fuel literally anywhere in the world. I mean Dudu Myeni was still the chairperson at the time … so anything could happen. And as much as she would enjoy France, she would be stuck there. My first indication I was back on SAA was an email from them asking if I wanted to buy the seat next to me. While the flight had been booked by a company, I could, for not much money, ensure that the seat next to me was empty. It was easy to pay with my credit card. While not much of a gambler, I decided to take the risk and see if I got it for free. And I did. The person on the other side of our free seat told me she'd taken the same gamble. As a pair of winners, we both agreed that flying on an SAA plane brought back a flood of memories. I had been taken back to a time before flying lost its lustre. Even the in-flight staff, incredibly professional and welcoming, were a reminder of an almost previous age. Back when flying was still magic. It lasted until the moment I got my iPad out and got back to work. Happy memories Those happy memories must be a wonderful help to SAA now. I feel literally stuff-all for Mango. When I worked at the SABC, I always knew that if I was flying anywhere, it would be on an SAA ticket. Parastatal to parastatal, if you know what I mean. I used to groan when the SAA flight became a Mango flight (how did that happen all the time, I wonder?). My memory of them was that they were just always late. You were always sitting in the airport waiting for the bloody thing to arrive. And when it did, you knew that it was going to be a horrible rush. And while SAA gave you an in-flight meal (and, amazingly, a drink) on Mango, you got an R80 voucher. I used to get so incensed that I'd use the voucher to buy one or two things and then ask the other passengers around me what they'd like. I was determined to use the full value of the voucher just to spite them. The poor steward's expression suggested I was not the first person who'd done this. So, I can't really understand who'd want to take up Mango now. It doesn't seem to have any assets that are really worth using. It doesn't have planes, or even routes. Maybe someone has a better understanding of the aviation industry than I do. Maybe there's a gap in the market somewhere. But I think to make Mango fly again is going to require an awful lot.
The South African
09-07-2025
- Business
- The South African
Mango Airlines' return to the sky hits major stumbling block
In a major blow to Mango Airlines' long-delayed comeback, the Gauteng High Court in Johannesburg has ruled that the state-owned low-cost carrier's business rescue plan cannot be implemented, casting fresh doubt on the future of the airline, which has been grounded since July 2021. The ruling follows a legal challenge from Aviation Co-ordination Services (ACS) – a key creditor owed approximately R2.91 billion – who questioned both the fairness and viability of the proposed rescue strategy, which was developed by business rescue practitioner Sipho Sono. ACS, responsible for vital aviation services such as baggage and cargo screening, argued that the plan grossly undervalued creditor compensation, offering only 4.43 cents on the rand. Describing the offer as 'negligible, if not nominal,' ACS claimed the plan lacked a solid foundation for long-term financial recovery. When Mango entered business rescue in 2021, the airline had few tangible assets, with most of its operational capacity dependent on leased aircraft and infrastructure. The business rescue plan included a controversial compulsory cession clause, which the court has now declared 'invalid and of no force and effect.' In a scathing critique, Judge Fisher rejected Sono's opposition to the ACS application, describing it as 'unmeritorious' and raising further questions about the fragility of the airline's recovery efforts. Despite the setback, Sono has instructed his legal team to appeal the judgment, attempting to salvage a rescue plan that has been years in the making. However, the road ahead appears increasingly uncertain, with ongoing negotiations with creditors and the urgent need for investment looming large. The prolonged grounding of Mango has not only crippled its operations but also affected countless employees, customers, and industry stakeholders, highlighting the broader challenges plaguing South Africa's aviation sector amid continued economic volatility. The full court judgment is available via the Southern African Legal Information Institute (SAFLII). Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
03-07-2025
- Business
- IOL News
Mango Airlines faces legal challenges in its business rescue plan
State-owned Mango appears no closer to the skies again, four years after the low-cost airline was grounded in July 2021, as legal challenges intensify. Image: File Troubled state-owned low-cost airline Mango's business rescue practitioner (BRP), Sipho Sono, has instructed his legal representatives to appeal against the Gauteng High Court, Johannesburg, judgment stopping the implementation of its business rescue plan. The move follows Judge Denise Fisher finding that 'the plan, shorn of its complexity, amounts to nothing more than the confiscation of the creditors' claims in order that they be transferred by Sono to an investor who pays no value for them or the shares'. The matter was brought by Aviation Co-ordination Services (ACS), which provided security-related services such as baggage and cargo screening services, baggage reconciliation, and check-in services. The company hauled Mango and Sono to court over the plan to save the South African Airways subsidiary. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ ACS is among dozens of creditors owed about R2.91 billion by Mango before it was placed under business rescue in July 2021. Mango owes ACS over R23.3 million and was among the creditors who voted against Sono's business rescue plan approved by 98% of the voting creditors. ACS objected to a payment to the creditors (clause 6.2.6) in the plan, stating that all of the remaining balance of the claims of the remaining concurrent creditors will be ceded to the investor at face value thereof, but for nominal consideration. In his latest communication all affected parties, Sono indicated that on June 17, the Gauteng High Court, Johannesburg, handed down a judgment in the application launched by ACS in terms of which it declared the compulsory cession contained in clause 6.2.6 of the business rescue plan was declared invalid and of no force and effect. The court also declared that the business rescue plan cannot be implemented. 'Since the handing down of the judgment, the BRP has carefully studied the judgment and consulted with his legal representatives,' Sono explained. The BRP said following the engagements with his lawyers, he intends to apply for leave to appeal against the whole judgment. He has accordingly instructed his legal representatives to prepare the necessary documents for purposes of noting the appeal and undertook to provide further updates on the status of the appeal in due course.
IOL News
19-06-2025
- Business
- IOL News
Court halts Mango airline's business rescue plan
State-owned Mango's step towards resuming flights does not appear to be any closer, four years after the low-cost airline was grounded in July 2021. This follows a Gauteng High Court, Johannesburg ruling that its business rescue plan cannot be implemented. Image: File The process of reviving state-owned low-cost airline Mango appears to have been stopped after the Gauteng High Court, Johannesburg declared that its business rescue plan cannot be implemented. Aviation Co-ordination Services (ACS) hauled Mango and its business rescue practitioner Sipho Sono to court over the plan to save the subsidiary of South African Airways (SAA). ACS, which provided security-related services such as baggage and cargo screening services, baggage reconciliation and check-in services, is among dozens of creditors owed about R2.91 billion by Mango before it was placed under business rescue in July 2021. At the time it was placed under business rescue, Mango did not own any material assets as its most significant assets were leased. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading In September 2021, a couple of months after being placed under business rescue the only asset on Mango's balance sheet was a spare engine bought by SAA for US$9.6m with the lowest indicative offer received in the last 12 months being around US$2m (R30m then). Mango also had an un-flown ticket liability of about R183m at the start of the business rescue through its full value voucher system. ACS is owed over R23.3 million by the SAA subsidiary and was among the creditors who voted against Sono's business rescue plan, which was approved by 98% of the voting creditors. The company objected to a payment to the creditors (clause 6.2.6) in the plan stating that all of the remaining balance of the claims of the remaining concurrent creditors will be ceded to the investor at face value thereof but for nominal consideration. It also indicated that the concurrent creditors, except the SA Revenue Service and the creditors in respect of the un-flown ticket liability, will be paid a "top up" settlement payment for their claims. This meant that the majority of the creditors would be paid 4.43 cents to every rand. ACS complained that the estimated settlement would translate roughly to R44,300 per R1m, a return which is negligible, if not nominal. In addition to the debt acquired by the investor through the cession of the claims of concurrent creditors may be converted to equity (or quasi equity instrument), subordinated or otherwise be dealt with in such manner that Mango will be restored to solvency. On Tuesday, Judge Denise Fisher found that 'the plan, shorn of its complexity, amounts to nothing more than the confiscation of the creditors' claims in order that they be transferred by Sono to an investor who pays no value for them or the shares'. 'The compulsory cession contained in clause 6.2.6 of the business rescue plan is declared to be invalid and of no force and effect. It is declared that the business rescue plan cannot be implemented,' the judge ordered. Judge Fisher said Sono's opposition of ACS's application was unmeritorious. Earlier this month, Sono announced Mango's plans to resume operations and requested passengers with un-flown tickets to register on its website, promising full value refunds once it takes to the skies again after four years. Sono did not respond to requests for comment on Thursday.
Zawya
13-06-2025
- Business
- Zawya
Mango Airlines business rescue nears investor deal as South African Airways distances itself
The business rescue process for Mango Airlines is in its final stages, with a sale-and-purchase deal between the airline and its selected investor nearing conclusion. This follows ongoing public inquiries about the future of the low-cost carrier, which has been grounded since July 2021. Source: Maarten Visser via Wikimedia Commons Business Rescue Practitioner (BRP) Sipho Sono confirmed that Mango is working to finalise the transaction, which aims to relaunch the airline. This stage follows a lengthy process marked by debates and litigation between Sono, the former Ministry of Public Enterprises, and the South African Airways (SAA) board over concerns regarding transparency related to the identity and financial capacity of potential investors. As part of the process, Mango is also verifying outstanding claims from passengers who bought tickets before 26 July 2021 for travel dates beyond that, when the airline ceased operations. In a statement, South African Airways (SAA) moved to clarify its position, emphasising that it has no authority or involvement in Mango's financial obligations, business planning, or claims processes. Mango, though a subsidiary of SAA, entered business rescue in August 2021, separate from the process SAA exited in April 2021. 'SAA has no authority or direct oversight over Mango's financial obligations, current and future business plan,' the airline said. 'We urge affected individuals to follow Mango's official channels for any inquiries related to its business rescue process.' SAA reaffirmed that it remains focused on its operational priorities, while the outcome of Mango's business rescue lies solely in the hands of the appointed practitioner and the selected investor. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
