South African Airways (SAA) says it has no involvement in the business rescue of its subsidiary, Mango Airlines
Image: Karen Sandison / Independent Newspapers
South African Airways (SAA) says it has no involvement in the business rescue of its subsidiary, Mango Airlines, as the low-cost carrier moves closer to finalising a sale to a new investor.
The airline issued the clarification following a wave of public queries about Mango’s status.
SAA emphasised that Mango’s business rescue process is entirely separate from the one SAA exited in April 2021.
"Mango Airlines (SOC) Limited remains a subsidiary of SAA that was placed in business rescue in August 2021. Mango’s business rescue process is totally separate from the business rescue process that South African Airways (SOC) Limited came out of in April 2021," the airline said.
"SAA has no authority or direct oversight over Mango’s financial obligations, and current and future business plan," it added in a statement to the media.
The update comes after Mango’s Business Rescue Practitioner, Sipho Sono, confirmed that the airline is nearing the final stages of negotiating a sale and purchase agreement with a potential investor.
"This stage of the business rescue process follows debates and litigation between Mr Sono, the former Ministry of Public Enterprises, and the Board of SAA on the level of transparency required from a BRP on the identity and financial capabilities of the investors purchasing a business being disposed of".
Mango halted its operations on July 26, 2021, leaving many passengers with unused tickets.
"As part of this BRP’s disposal process, Mango is verifying the value of unflown air tickets purchased by Mango passengers before 26 July 2021 for departure dates after 26 July 2021. Mango operations were suspended on 26 July 2021.
"SAA emphasizes that it is not involved in Mango Airlines' claims, refunds, or any financial settlements related to its operations".
SAA also urged affected individuals to follow "Mango’s official channels for all inquiries related to its business rescue process".