Mango Airlines will enter into business rescue, according to South African Airway’s interim Chief Executive Officer, Thomas Kgokolo.
This statement was made on ENCA on Monday morning, and comes as no surprise considering the state of its holding company South African Airways (SAA).
“What we can say is that the board and shareholders have agreed that Mango will go into business rescue,” Kgokolo said. “We are currently in consultation with our key stakeholders in terms how we can manage that particular process.”
SAA was placed into business rescue in December 2019 and exited in April 2021 when the Takatso consortium bought a 51% stake in the company. This move is expected to give the embattled state airline a new and refreshed lease on life.
South African airlines have taken strain in the last few years, and more especially since COVID-19. Kulula Airlines suspended all flights for two weeks when President Cyril Ramaphosa moved the country to Alert Level 2 in early July. The company further extended the flight suspension on 13 July and said they will now only begin operating again on September 1.
Comair CEO, Glenn Orsmond said: “This decision was not made lightly, as it has a significant impact on both our customers and our employees. However, under the circumstances we believe it is the correct course of action to ensure the health and wellbeing of our customers and employees. We empathize with Government’s unenviable position with regards to balancing the health of the nation and the suffering economy.”