South African low-cost carrier Mango Airlines has announced a structured wind-down of its operations as negotiations with its potential investor fell through.
Rescue plan an uphill battle for Mango
The airline has announced that it will officially begin shutting down operations. It said in a press release:
“Mango Airlines SOC Limited (“Mango”), currently under business rescue, wishes to inform all customers and stakeholders that the anticipated transaction with a prospective investor has not materialised. Consequently, the Business Rescue Practitioner (“BRP”) will be proposing an Amended Business Rescue Plan that outlines a Structured Wind-Down of the company.”
The South African low-cost carrier had placed itself in a voluntary business rescue procedure in July 2021, with business rescue practitioners being appointed in August of that same year. Since then, it has been battling courts and trying to find a third-party investor to resume operations. The airline was a wholly owned subsidiary of South African Airways (SAA), which has been facing its own financial and legal challenges.
Mango Airlines earlier this year had said that they were negotiating with a potential investor. In an August 4 circular from the business rescue practitioners made public on the airline’s website, the investor was named as Ubuntu Air Services Proprietary Limited or Ubuntu Air.
Ubuntu Air had proposed to buy out all of the airlines’ shares from SAA. However, the negotiations were halted by a June 17 court judgement regarding “the involuntary cession of the balance of the creditors’ claims to the Investor,” which was Ubuntu Air. In simpler terms, the court had refused the rescue plan in the current form owing to the clause regarding the transfer of rights from creditors to the investor. The cession issue caused delays in the deal, following which Ubuntu Air decided to withdraw from the deal.
The August 4 circular said:
“Regrettably, on 31 July 2025, the Investor reverted that it had second thoughts about the transaction and would not be proceeding. Part of the reason was that the delays have made scheduling of a resumption of operations unrealistic, and the commitment of the other funding partner could not be secured.”
Next steps for Mango customers
The airline has said that following a structured wind-down of its operations, it will be distributing the proceeds from the realisation of its assets as a final dividend to affected customers.
In June this year, the airline in a statement had said that if its negotiations with its potential investor were unsuccessful, it would treat customers’ unflown tickets as creditor claims in business rescue.
Following the fallout in its investor negotiations and its decision to wind down operations, eligible customers will receive a payout. This payout would account for a portion of the value of their ticket or voucher, as verified per procedure.
In order to be included in the calculation for the final payout, customers have been asked to verify their unused tickets or vouchers on the official Mango Voucher Portal before September 1.
Further details are available on the airline’s website.
Were you impacted by Mango Airlines’ business rescue? Do share your experience in the comments.
