Mango Airlines’ sale is reported by the Business Rescue Practitioner, Sipho Sono, to be progressing, despite a two-year suspension of its operating licences by the Air Services Licensing Council (ASLC).

In a surprise turn of events, Mango disclosed this week that it had been called before the ASLC on July 28 to address concerns that it had violated the country’s Air Services Licensing Act and to discuss the suspension and/or cancellation of its licences.

In a letter to Mango from the ASLC, dated August 3, 2022, and disclosed on the airline’s website, the Council said Mango had failed to address the Council on certain non-compliance issues and that it had not operated licensed air services for an uninterrupted period exceeding 12 months, and therefore, its licences were suspended with immediate effect. 

In a written response, Mango’s Business Rescue Practitioner, Sipho Sono, said the team’s initial reaction was shock, but then it was clarified by the DoT and its regulatory experts that the suspension could be overturned.

Sono said in the response: “The suspension simply means that Mango may not resume operations until it can demonstrate to the Council that it is in a position to meet the conditions of the licences.

“To this extent, it is expected that the conclusion of the current investor process will place Mango in good stead to be able to meet the conditions of the licences.”

Sono said Mango would submit an application to the Council for the amendment of the licences in terms of Section 14 of the Act and the airline believed that, on approval of that application, the suspension would be lifted.

“Whilst the Council has given Mango a period of 24 months to address the non-compliance, it is anticipated that Mango will be able to demonstrate compliance far earlier than the 24 months.”

While the identity of Mango’s buyer is still secret, a BRP status report filed at the end of July revealed that the necessary proof of funding had been received in the form of a bank confirmation letter. A bank guarantee was due on Wednesday (August 10).

No further updates have been communicated, and a sale price was not disclosed in the latest BRP report.

Sono has indicated that once the necessary paperwork is complete, a detailed application would be drafted and shared with SAA to submit to the Department of Public Enterprises (DPE). Thereafter, the BRP plans to engage with SAA and the DPE to agree on next steps, timelines and announcements.

If the sale process falls through, Sono has said that a wind-down process will be implemented. The only asset of value that remains is a spare engine. Sono said there were already offers for its disposal.

The status report also concluded that the BRP remained of the opinion that there was a reasonable prospect of rescuing the company.