The Sunday Mail
Frail budget airline Mango will not resume operations in December this year as outlined in its business rescue plan, if its shareholder SAA and ultimate shareholder the SA Department of Public Enterprises have their way.
The Citizen has seen an exchange of correspondence between SAA interim chairperson Profession John Lamola and business rescue practitioner Sipho Sono, wherein Mango is explicitly instructed not to pursue the intent of the plan, published at the end of October.
This could mean the end of Mango and all 709 jobs soon.
Lamola’s letter, dated October 30, 2021, refers to the business rescue plan published on the same day saying that: “ . . . our (the SAA board’s) concern that the business rescue plan provides that Mango will resume flight operations in December 2021.”
The SAA chair argues that “SAA as the sole shareholder of Mango was not in a position to provide nor to motivate to SAA’s shareholder for any capital injection required to return Mango to commercial operations.”
Lamola adds that there is no funding available for working capital to allow Mango to resume operations.
Earlier this year, R819 million was allocated to the ailing airline through a Special Appropriation to assist in its survival. — Citizen.
