South Africa's Mango should be privatised - administrator

The administrator of Mango Airlines has proposed that the South African Airways subsidiary be sold off in its entirety to a private investor to secure its long-term viability, but in the meantime must resume operations with state funds by December to safeguard its route rights and take advantage of high season demand, or be mothballed until an investor is found. In the business rescue plan published on October 29, 2021, administrator Sipho Eric Sono of consultancy SNG Grant Thornton said he was advised on October 6 by SAA, which owns 100% of Mango, that the subsidiary does not feature in its own restructuring plans, and would not receive any more state funds other than those already allocated. “Having established that Mango will not form part of the SAA Group, the administrator has determined that for Mango to be rescued and for it to remain sustainable into the future, the company requires an investor that would fund ongoing operations beyond its restructuring. This business rescue plan, therefore, proposes that the company be sold to an interested investor.” Should an investor not be secured, the administrator proposes that Mango be wound down. Story has more details.<br/>