Mango Airlines, the South African low-cost carrier, will now undergo a structured wind-down after spending nearly four years in business rescue and facing a failed acquisition.
According to dailyinvestor, launched in 2006, Mango Airlines is a subsidiary of South African Airways (SAA), the country’s national flag carrier. For years, it was one of South Africa’s most popular low-cost airlines.
However, the company experienced severe financial challenges, which came to a head in 2021, when the airline was grounded and it entered voluntary business rescue proceedings.
Mango’s business rescue plan was highly dependent on securing an investor, which it found when AfricaStay, on behalf of Ubuntu Air, offered to acquire the airline for R1,000 in August 2022.
As part of this proposed deal, AfricaStay pledged R1 million and the sale proceeds of an aircraft engine for credit payments.
The deal was accepted by Mango’s business rescue practitioner (BRP) in 2022, but was subject to government approval, including from the Minister of Public Enterprises.
After this deal was submitted for government approval, SAA raised concerns related to the deal, which delayed the minister’s decision.
In response, Mango’s BRP instituted legal proceedings seeking an order directing the minister to make a decision.
The High Court ultimately declared that the minister’s failure to make a decision was unlawful and constitutionally invalid and directed the minister to make his decision within 30 days.
READ: Aviation: Mango Airlines Poised for A Comeback, 4 Years After being Grounded in South Africa
Subsequent appeals from the minister were unsuccessful, but the litigation process resulted in substantial delays in implementing Mango’s business rescue plan.
Therefore, in 2023, the International Air Services Council cancelled Mango’s international air service licences with immediate effect. In 2024, the airline’s domestic air service licenses were also cancelled.
This meant Mango’s BRP and AfricaStay had to revise their proposed transaction, and the two parties unveiled a new model for the airline.
READ: Aviation: South Africa Airways says subsidiary carrier, Mango Airlines no longer viable
This new model would see Ubuntu Air acquire Mango and operate the company through a joint venture with a licensed airline. Under this plan, Mango’s brand would be used under a royalty model.
However, this new plan also hit a setback when, in June 2025, the High Court declared that part of the plan was invalid and of no force and effect, meaning the plan could not be implemented.
While Ubuntu Air initially committed to appealing the judgment and amending the plan, it eventually withdrew on 31 July 2025, citing the repeated delays and an inability to secure a funding partner.
Despite this significant setback, in a statement released on 4 August 2025, Mango’s BRP explained that business rescue is still a better option than an immediate liquidation.
This is because, in liquidation, the South African Revenue Service would have preference, leaving little to nothing for Mango’s creditors.
The company’s BRP estimates that liquidation would see creditors receive 2.68 cents for every rand they are owed.
In contrast, business rescue proceedings will allow Mango to follow a structured wind-down, which could see the company’s creditors receive up to 12.18 cents in the rand.
Therefore, looking forward, Mango’s BRP proposed publishing an amended business rescue plan for a structured wind-down.
Under this adapted plan, the BRP said the company could be in a position to pay an initial dividend – around 70% of the projected dividend – to creditors within 30 days of the plan’s adoption.
The amended plan will be published in 15 days, after which a meeting with Mango’s creditors will be held to vote on the plan.
