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The would-be buyers of South African Airlines (SAA) LCC subsidiary Mango are looking to relaunch in partnership with another airline, after South Africa’s Air Services Licensing Council (ASLC) detailed plans to cancel Mango’s air services licenses.
Mango has not flown since it entered business rescue proceedings in July 2021. A new owner has been identified and vetted, but the sale process has dragged on since December 2021, slowed down by various legal battles.
In the latest development, Mango business rescue practitioner Sipho Sono said the ASLC is seeking to cancel Mango’s air services licenses, which have been suspended since August 2022.
“On Nov. 15, 2024, the Air Services Licensing Council issued a letter notifying its decision to cancel Mango’s air services licenses,” Sono said in his 37th status report, covering November 2024, which was published on Jan. 10.
Sono, who has fought hard to preserve Mango’s licenses, believes there may be procedural grounds to challenge the decision.
However, this could take “considerable time” to resolve.
“The BRP and the investor are actively considering a revised business model,” Sono said. “This model would involve partnering with a strategic entity that the investor has been engaging over the past few months. This potential partner holds both the necessary scheduled licenses and an air operator certificate to operate an airline. Negotiations to finalize these arrangements are expected to conclude within the coming months.”
Sono warned that if these discussions fail, wind-down proceedings remain a “realistic possibility.” This will primarily impact passengers with unflown tickets, who will be treated on par with other creditors.
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