South African Airways says it subsidised low-cost unit Mango

South African Airways said the airline subsidised its low-cost entity Mango Airlines by sub-leasing planes at a discount to market value, a move that may have given the carrier an advantage in the country’s highly competitive budget market. The carrier sub-leased Mango all 10 of its aircraft “at a significantly discounted cost” while paying the leasing company the market rate, SAA said. The move was a “necessary investment” to support the low-cost entity, SAA said. SAA’s comment on sub-leasing planes to Mango comes after last week’s resignation of Mango’s CE Nico Bezuidenhout, who will become the head of FastJet from Aug 1. The Democratic Alliance, South Africa’s largest opposition party, will request that the Competition Commission start a probe into possible collusion between SAA and Mango. <br/>