Green Light for Mango Airline Sale as Gordhan's Efforts Fail

The future of South Africa's grounded low-cost airline, Mango, has taken a decisive turn as business rescue practitioner Sipho Sono confirms that Ubuntu Air Services, a partnership between influential industry players Africa Stay and DG Capital, is the preferred buyer. This unfolds after Sono took Public Enterprises Minister Pravin Gordhan to court over hindrances delaying the sale process, ultimately forcing Gordhan's hand in the matter.

The Citizen reported on Friday morning that details of the pending acquisition have been shrouded in speculation for some time, with the saga intensifying as Minister Gordhan actively tried to stall the transaction. In a recent development, however, Sono has secured the upper hand after winning legal challenges against Gordhan, who was pushing back against signing off on the deal due to claimed insufficient details.

Mango's plunge into business rescue in mid-2021 rattled the South African airline industry, with many attributing its downfall to the disastrous effects of the Covid-19 pandemic. But the struggle to sign off on its disposal sparked rumors of strategic blocking, insinuating that Gordhan’s resistance might be linked to protecting state carrier South African Airways (SAA) and its affiliate Lift from potential competition.

Notwithstanding Gordhan’s efforts, the sale now seems fated to proceed. Sono's triumph in court has placed a tight deadline on Gordhan's ability to influence the outcome. Failing to submit a petition by the specified date to the Supreme Court of Appeal following an unsuccessful High Court appeal has now left him with rapidly diminishing options.

In the backdrop of these developments, the pending purchase by Ubuntu Air Services appears to breathe new life into Mango Airlines, potentially shaking up the aviation industry that SAA and Lift currently navigate within. If the transaction fails, however, Sono has signaled readiness to initiate a wind-down process as per an already-approved business rescue plan.

The aviation sector, recovering from the turbulence of the pandemic, watches closely as the revival of Mango could dramatically alter its landscape. Industry experts speculate that a resurgent Mango could intensify competition for SAA, which has been struggling to regain altitude even amidst positive public statements from its management.

In the midst of legal battles and strategic power plays, the future of Mango Airlines hangs in the balance, promising both challenges and opportunities for South Africa's airline industry.