Mango's potential buyer, Ubuntu Air Services, is looking to partner with airlines that already hold licenses and air operator certificates. The move comes after Mango's license was revoked late last year.
In a status report, Mango's Business Rescue Practitioner (BRP), Mr Sipho Sono, said that on 15 November 2024, the Air Services Licensing Council (ASLC) will write a letter confirming the decision to revoke Mango's Air Services License. We notified creditors and related parties that we had issued a As reported by Travel News, the revocation comes after a two-year period imposed in 2022 for non-compliance and Mango's failure to continuously operate licensed air services for more than 12 months. This followed the suspension of the license.
Mr Sono said BRP had been advised that there may be grounds to challenge the ASLC's decision. Mango's lawyers are currently considering the option of reviewing or appealing the sentence.
Following the revocation of the license, BRP is working with prospective buyers to develop a revised business model. “This model involves partnering with strategic organizations that investors have been involved with over the past few months. Negotiations to finalize these agreements are expected to be completed in the coming months,'' Sono said.
However, Sono warned that these arrangements were being negotiated in line with the adopted corporate rescue plan and that if the plan fails, BRP may have to start a wind-down process.
“Given recent developments, a retrenchment process remains a real possibility. If this happens, the most affected will be customers with unflown tickets, who will receive only a fraction of the value of their tickets. This is because there is a high possibility that only a portion of the debt will be recovered and that they will be treated the same as other creditors,” Sono said.
