Low cost airline Mango finds a buyer

Low-cost airline Mango may soon taxi down a runway near you again, if all goes to plan. The successful bidders evidenced proof of funding to business rescue practitioner (BRP) Sipho Sono last week.

Mango has been in business rescue since the middle of last year and all staff, bar those in key posts, were let go.

Sono went in search of a suitable investor in November last year and the process is approaching conclusion following the bidder’s compliance to prove financial muscle.

In his monthly business rescue update, Sono noted: “The investor process has progressed substantially and the preferred bidder has provided the necessary confirmation of funds.

“In addition, the BRP has en- gaged with the preferred bidder to ascertain, among other things, working capital requirements and the availability of funds to resume operations, adequate skills to operate an airline, plans for securing aircraft and its route net- work and expansion plan.”

Last month, it looked as if the Air Services Licensing Council had scuppered Mango’s hope of finding an investor when it suspended its licence and route network.

Sono told The Citizen at the time that upon transfer to a successful bidder, the airline’s rights would be reinstated. Mango’s international route rights were never suspended.

Sono confirmed the International Air Service Council – separate from the body that manages domestic approvals and rights – did not act against the airline.

“The council has not suspend- ed Mango’s licences and has also not issued any notice to do so.” Mango holds the coveted Johannesburg-Zanzibar route.

The bidding process has been kept under a shroud of secrecy. Sono added: “There is no truth to the rumours about who the frontrunners are and [former SA Airways chief executive and owner of liquidated Fly Blue Crane, Siza Mzimela, and former Sky- wise shareholder Saima Malik] are not part of any investor group that submitted.”

In his update, Sono listed a few more hurdles. He said: “The disposal of shares by SA Airways SOC Lim- ited requires SAA to notify and seek approval of the transaction in terms of the Public Finance Management Act.

“In accordance with the business rescue plan, the BRP will compile an application and submit to relevant parties for consideration and/or approvals.

“The BRP will further engage with both the department of pub- lic enterprises and SAA to agree next steps and any announcements to be made in due course.”

There may also have to be Com- petition Commission clearance. Sono and the preferred bidder will also be engaging with the Air Service Council for change of ownership approvals.

He added: “This will also facilitate the lifting of the suspension of Mango’s domestic licences.” Should the transaction fail, Mango will be wound down.

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