8 hours ago
- Business
- The South African
End of the runway for Mango Airlines as rescue deal falls apart
South Africa's low-cost airline Mango Airlines is set to be wound down in a structured closure, marking what appears to be the final chapter in the carrier's four-year battle for survival.
The announcement follows the withdrawal of would-be investor Ubuntu Air – the last viable suitor in Mango's business rescue process – leaving creditors with a stark choice: accept a managed wind-down or risk a harsher liquidation.
Ubuntu Air, backed by tourism firm AfricaStay, formally pulled out of the deal on 31 July 2025, citing: Regulatory gridlock delaying approvals,
Uncertainty over relaunch timelines, and
A failed funding partnership, which made continuation unfeasible.
Their exit came just weeks after a High Court ruling in June struck down key elements of the existing business rescue plan, forcing revisions that failed to secure new financial support.
Mango's Business Rescue Practitioners (BRPs) are now recommending a structured wind-down – still under business rescue provisions – as the best of two difficult options. Structured wind-down payout: 12.18 cents per rand owed
Liquidation payout: Only 2.68 cents per rand, due to SARS priority claims and associated costs
Mango reportedly still holds approximately R383 million in cash, which can be used to facilitate partial creditor payouts within months.
'The structured wind-down allows for a controlled exit while preserving as much value as possible for creditors,' said one BRP source familiar with the process.
With licenses lapsed, no fleet in operation, and no active buyer stepping in, Mango's return to the skies is now effectively impossible.
The once-promising airline, founded in 2006 as a low-cost arm of South African Airways (SAA), was grounded in 2021 due to financial strain and has since navigated a rocky path through court battles, regulatory limbo, and delayed rescue plans.
The collapse of the Ubuntu Air deal marks the last credible opportunity for revival, making Mango's structured wind-down the most viable closure scenario.
Creditors are now expected to vote on the BRPs' final recommendations, likely signalling the end of an airline that once connected South Africans affordably across the country.
Mango's fall joins a list of South African aviation casualties in recent years, raising continued questions around the sustainability of state-backed carriers and the regulatory environment for potential private investors.
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