MANGO business rescue practitioner (BRP) Sipho Sono has been unable to indicate whether or not the troubled state-owned low-cost airline will challenge the decision to cancel its licences.

The Air Licensing Services Council cancelled Mango's licences in November.

“Unfortunately I don’t have answers to those questions. We report progress to creditors on a monthly basis,” said Sono in response to whether or not a decision has been taken to review or appeal the council’s cancellation of the licenses and by when he is hoping to finalise arrangements with the potential partner to get the airline back in the skies.

In his latest monthly update, Sono wrote: “The BRP regrets to inform creditors and affected parties that on November 15, 2024, the Air Services Licensing Council issued a letter notifying its decision to cancel Mango’s air services licences”.

He added that upon review, he was advised that there may be grounds to challenge the council’s decision, as it contravenes certain procedural requirements outlined in the Air Services Licensing Act 115 of 1990.

According to Sono, legal counsel was currently assessing the available options to pursue a review or appeal, and he is prioritising the matter to address potential risks promptly.

“It is important to note, however, that the review process may take considerable time to resolve, and the immediate implications of the council’s decision on Mango’s potential operations and the business rescue process are being carefully evaluated,” he warned, promising to continue to communicate developments and provide updates as the situation evolves.

Additionally, Sono has engaged with the investor to explore alternative options in response to the council’s letter of cancellation.

He continued: “Although the cancellation of Mango’s licenses is a setback considering the effort by the BRP to preserve them, the BRP and the investor are actively considering a revised business model.”

Mango’s 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. To be clear, these arrangements are being negotiated in line with the restructuring objectives in the adopted business rescue plan,” Sono explained.

He also issued a stern warning that should these discussions fail for any reason he may have to initiate the winding-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,” Sono explained.

He still expressed confidence that Mango can still be saved.

“The BRP remains of the opinion that there is a reasonable prospect of rescuing the company, or that the business rescue proceedings would result in a better outcome for creditors and the shareholder of the company than would otherwise be achieved should the company be placed in liquidation,” added Sono.

Mango was placed under business rescue in 2021 and had expected to be profitable by 2023.

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Mango not closer to returning to the skies after licence cancellation

Mango Airlines’ fate hangs in the balance, waiting for clarity on future