Gordhan blamed as Mango sale remains a no-go

Budget airline Mango’s future still hangs in the balance. Its sales has now been delayed twice. First by SAA, and now by Public Enterprises Minister Pravin Gordhan.

Mango has been in business rescue for almost two years and in September 2022, began seeking a new owner with earnest. By November, a suitor was identified by business rescue practitioner, Sipho Sono, and the seemingly arduous process to dispose of Mango began.

SAA was the first spanner in the works, delaying the sale process by submitting several questions back to Sono. These were eventually answered to the satisfaction of the state-owned carrier but, not to the bar set by Gordhan and the Department of Public Enterprises (DPE). The lack of ministerial approval now holds whatever is left of Mango, its potential buyer and Sono to ransom.

Sono said: “This time, it is not SAA because they signed off on the responses we gave and made a motivation for approval, hence I was confident last month that we were close to a decision. However, as indicated in my report, SAA then wrote to us recently indicating that DPE were not satisfied with the answers we gave. Obviously, this came as a surprise as the minister had previously suggested that the BRP and SAA must get to a consensus.”

SAA sale to Takatso

There has also been no real update on the much fan-fared sale of SAA to Takatso – also under the purview of Gordhan.

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Aviation commentator and SA Flyer editor Guy Leitch said that he believes the go-slow on Mango remains a tactic to protect the Takatso deal and its existing airline, Lift.

He added that he questioned what Mango’s buyer would be purchasing anyway, given that there are no assets, bar a single engine, and no current route rights to speak of.

Mango’s rights were suspended by the Licensing Council last year, likely until such time that it may operate again.

Leitch said: “It’s better for anyone just to start a new airline. Why take over a legacy when you can start your own, new brand and business, without an SAA hangover.”

Sono said: “The delay in approval cannot be indefinite. I believe we should get to a point of getting the minister’s decision, one way or another.”

Gordhan blamed for Mango inertia

Alf Lees, who has been vocal about the DA’s disapproval of the DPE’s conduct, and SAA and Mango’s respective value and futures, said: “The failure of Pravin Gordhan to do everything possible to assist with the business rescue of Mango, and instead to actually sabotage its survival is yet another example of his unsuitability to be in charge of state-owned companies or even to be in the Cabinet at all.

“Pravin Gordhan is stuck in a Marxist control of every aspect of the economy time warp that seems to blind him to any form of real privatisation and thus is the cause of the loss of jobs.”

Sono is still unwavering in his conviction that Mango can be saved. He dispelled rumours that he was recently overheard saying that the airline does not stand a chance of survival any longer. He will also not be looking for a new investor, despite the holding pattern that the current transaction is in.

Sono said: “I’m satisfied with the current investor so I’m not entertaining any other suitors as without a ministerial approval for the disposal, it would not matter how many other suitors there are.”

Should a decision about Mango’s sale not be made soon, it may finally be the end of one of the only state-owned company success stories in South Africa’s history.

Sono said: “The business rescue plan makes provisions for a wind down, which effectively means creditors are paid a dividend from the available cash and proceeds from the sale of the engine.

“Thereafter, Mango ceases to exist as an airline, but only as a shell. This is the last resort which I’m trying to avoid, especially that there is a credible buyer that wants to relaunch Mango and create jobs.”

Lees expressed his irritation with the sloth-like process. He said: “The ANC and President [Cyril] Ramaphosa must be held accountable for the disasters at SAA, Mango, SA Express and Eskom and that they have allowed Pravin Gordhan to finally destroy where state capture left off.”