BL Premium reports that SA Airways’ (SAA’s) low-cost subsidiary, Mango has indefinitely postponed resuming operations due to the lack of funds. Mango was scheduled to resume flying in December, after being grounded in July.

During the same month, the airline was voluntarily placed under business rescue in an effort to place it on a sound footing. However, there is currently no working capital to restart the airline’s operations in December, according to SAA, which has advised Mango’s business rescue practitioner Sipho Sono to use available funds to restructure the airline. SAA has refused to inject further capital into Mango and has advised the airline to find a strategic equity partner that will fund it going forward. Creditors are scheduled to meet to discuss and vote on Mango’s business rescue plan on 15 November. Mango was allocated R819m by the government in August as part of the funds given to SAA for its business rescue process. These funds however have not reached Mango, further deepening its financial woes, according to the National Union of Metalworkers of SA (Numsa). Numsa, the SA Cabin Crew Association (Sacca) and Mango Pilots Association (MPA) have criticised SAA’s decision to wthhold capital from Mango. “If Mango does not take to the skies it will struggle to find an equity partner, and the business rescue practitioner will be unable to do his job,” Numsa spokesperson Phakamile Hlubi-Majola said in a statement. SAA exited business rescue in April and it resumed operations in September. The airline is in the process of bedding down an equity deal with the Takatso Consortuim.

• Read the full original of the report in the above regard by Thando Maeko at BusinessLive (subscriber access only)

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