Grounded airline could be making a comeback in South Africa

The state-owned airline, which ceased operations in July 2021, is now in the final stages of concluding a transaction with a selected investor that could pave the way for its return.

Business rescue practitioner Sipho Sono, a chartered accountant appointed to manage Mango’s restructuring process, confirmed progress is being made this week. 

In an interview with IOL on Thursday (5 June), Sono said the transaction is now in its final phases. 

As part of the process, Mango has begun verifying the value of ‘unflown’ tickets that couldn’t be used after its operations were suspended, and issuing vouchers.

Mango released a statement urging affected passengers to log their ticket and voucher information on the airline’s newly launched verification portal, which is available on the airline’s website. 

This portal opened to the public on 4 June 2025 and will remain active until 1 September 2025. The goal is to accurately account for outstanding liabilities before finalising the deal with the investor.

“If the transaction is successful, Mango will issue vouchers to customers that they can use when flights resume,” Sono explained. 

“However, if the transaction fails, these tickets and vouchers will be treated as creditor claims within the business rescue process, with passengers receiving a partial payout.”

Additionally, Mango’s parent company, South African Airways (SAA), has yet to approve the sale of shares agreement submitted in November 2022.

Although SAA previously approved Mango’s business rescue plan, it has not signed off on this essential agreement that would facilitate the airline’s sale to a new investor.

On 2 May 2025, Sono’s legal team issued a formal letter to SAA, demanding a response within 14 calendar days. 

He warned that any further delays could derail Mango’s return and jeopardise the success of the entire rescue process.

The reintroduction could be good news for flight prices

Mango’s exit in 2021 left a noticeable gap in the South African aviation market, especially in the budget travel segment. 

As one of the few affordable domestic airlines at the time, its disappearance reduced competition, placing pressure on the remaining carriers and resulting in a spike in ticket prices across the country. 

Consumers faced fewer low-cost options, while high demand and limited seat availability drove up fares, particularly on high-traffic routes like Johannesburg to Cape Town and Durban. 

Mango’s journey to potential recovery follows a turbulent period created by financial instability and operational challenges. 

The airline was officially placed under voluntary business rescue in July 2021 after it was grounded due to mounting debt and the withdrawal of financial support from government stakeholders.

Mango was heavily reliant on funding from its parent company, SAA, which itself was undergoing a business rescue process at the time. 

Without access to capital and unable to meet its obligations to staff, creditors, and service providers, Mango ceased operations and entered business rescue.

Despite numerous attempts to secure an investor over the past few years, progress has been slow, in part due to regulatory hurdles and delays from SAA and the Department of Public Enterprises. 

If the deal receives final approval, Mango could rejoin the competitive South African aviation market and provide more affordable options to domestic travellers. 

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/business/827228/grounded-airline-could-be-making-a-comeback-in-south-africa/