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The Citizen reports that state-owned budget airline Mango’s proposed business rescue (BR) plan was published on Friday afternoon. It outlines a restructuring plan for the airline or, as an alternative, liquidation of the asset.
It looks, however, either way that the plan is to get rid of Mango and that the airline will be sold off, with buyers hopefully available for this to commence shortly after the adoption of the plan. In the plan it is stated that “in accordance with guidance obtained from the shareholder that Mango will not form part of the SAA group going forward, it is accordingly envisaged in this BR Plan that an investor that will acquire all of the shares in the Company will be required. The process to search for a suitable investor will commence shortly after the adoption of the BR Plan.” The planned sale of the airline will comprise two proposed phases. Other salient points in the plan include the resumption of operations by December this year, with a fleet of 3 aircraft to start. The plan alludes to Mango expanding on this fleet as aircraft become available from lessors to exercise some of the lucrative route rights that it holds. Mango intends to cull almost 300 jobs as it intends to grow to a fleet of eight aircraft, ultimately shrinking a headcount of 709 to 412 during the restructure process. Mango’s debt was noted at around R 2,8 bn in the plan.
- Read the full original of the report in the above regard by Hein Kaiser at The Citizen
Get other news reports at the SA Labour News home page