Mango in business rescue: 'No scope for profits. No justification for existence'
Mango has suspended operations as it goes into business rescue
It is offering vouchers to its customers for travel on other airlines
State-owned low-cost airline Mango is going into business rescue.
The subsidiary of South African Airways (SAA) will offer customers vouchers for alternative travel arrangements on other airlines.
It announced on Tuesday that it is suspending its operations due to outstanding payments to one of its creditors.
The airline has been waiting for an R819 million capital injection from the government amid financial challenges that had resulted in employees working without pay.
John Maytham interviewed Guy Leitch, Editor at SA Flyer Magazine (scroll up to listen).
It should’ve been put into business rescue… in December 2019… SAA doesn’t really have a domestic airline much anymore…Guy Leitch, Editor - SA Flyer Magazine
Is there any role for a government to run an airline? … There’s no scope for Mango to be profitable… There’s no justification for Mango…Guy Leitch, Editor - SA Flyer Magazine