Mango halts operations, could enter business rescue

Posted by Zimasa Katamzi on 23 April 2021

Mango is facing financial difficulty and is preparing to be placed in business rescue. No aircraft will be available for operations as of May 1.

Mango puts a halt on operations

Communication was sent out to travel agencies and tour operators outlining the operational challenges the airline is facing on April 22. These challenges are said to have been caused by a string of broken promises relating to the Department of Public Enterprises (DPE) for Mango.

Acting CEO, William Ndlovu mentioned that the airline was promised funding after the budget approval in October 2020, and the funds were meant to be paid to Mango in January 2021. ‘However; due to reasons unknown to us we did not receive the funds in January 2021. We engaged the relevant stakeholders and were told to wait, – maybe in February 2021 the money will come.

‘We are now in April with no sign of money. At the beginning of April 2021, we were then informed that Mango will only receive funds in June 2021,’ he added.  This put Mango in a difficult situation, needing further extension from the creditors who declined to wait longer for payment.

Mango received an ultimatum from the lessors that should they not receive funding by April 30, their aircraft will be grounded until they are able to pay.

PICTURE: Twitter

yoast-primary - 1004431
tcat - Travel news
tcat_slug - travel-news
tcat2 - Travel news
tcat2_slug - travel-news
tcat_final -