The Department of Public Enterprises (DPE) has welcomed the High Court’s decision this week to place low-cost airline Mango under business recue, effective from July 28.
The boards of South African Airways (SAA) and Mango took a resolution to place Mango under business recue owing to financial and operational challenges.
“The decision is good news for all stakeholders in the aviation industry, as it brings certainty to the process that will unfold to restructure Mango and ensure we have a suitable aviation asset that will service the low-cost market in the country,” the DPE says.
It notes that the restructuring of the SAA subsidiaries – Airchefs (Section 189), South African Airways Technical (Section 189) and Mango – will ensure that, once restructured, the SAA group will have fit-for-purpose subsidiaries that will support and become the conduit for growth of the country’s aviation industry.