The prospective buyer of Mango, Ubuntu Air Services, is exploring a partnership with an airline that already holds licences and an Air Operator Certificate. This move comes in the wake of the cancellation of Mango’s licences late last year.
In a status report, Sipho Sono, Mango’s business rescue practitioner (BRP), informed creditors and affected parties that on November 15, 2024, the Air Services Licensing Council (ASLC) issued a letter confirming its decision to cancel Mango’s Air Service Licences. The cancellation followed a two-year licence suspension imposed in 2022 due to non-compliance and Mango’s failure to operate licensed air services for an uninterrupted period exceeding 12 months, as reported by Travel News.
Sono said the BRP had been advised that there might be grounds to challenge the ASLC’s decision. Mango’s legal counsel is currently evaluating the options for review or appeal of the ruling.
In response to the licence cancellation, the BRP is engaging with the prospective buyer to develop a revised business model. “This model would involve partnering with a strategic entity that the investor has been engaging over the past few months. This potential partner holds both the necessary scheduled licences and an Air Operator Certificate to operate an airline. Negotiations to finalise these arrangements are expected to conclude within the coming months,” said Sono.
However, Sono warned that these arrangements were being negotiated in line with the adopted business rescue plan and, should they fail, the BRP might have to initiate the wind-down process.
“The wind-down process remains a realistic possibility in light of recent developments. Should this occur, the most impacted parties would be customers with unflown tickets, as they would likely recover only a fraction of their ticket value and be treated on par with other creditors,” said Sono.
