{"id":407802,"date":"2021-07-28T10:01:48","date_gmt":"2021-07-28T08:01:48","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=407802"},"modified":"2021-07-28T11:23:44","modified_gmt":"2021-07-28T09:23:44","slug":"mayday-for-mango","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/motoring\/407802-mayday-for-mango.html","title":{"rendered":"Mayday for Mango"},"content":{"rendered":"

Mango Airlines has suspended all flights and services from Tuesday 27 July and is set to be placed under business rescue.<\/p>\n

Acting chief executive William Ndlovu said that the suspension of flights is due to outstanding payments to Air Traffic Navigation Services (ATNS).<\/p>\n

Mango Airlines is the low-cost arm of state-owned South African Airways (SAA) and is based at OR Tambo International Airport.<\/p>\n

It was launched in October 2006 using a fleet of new generation Boeing 737-800 aircraft, which has a seating capacity of 186.<\/p>\n

Mango Airlines has faced financial challenges lately, which saw its planes grounded due to non-payments and debt to Airports Company of South Africa (Acsa).<\/p>\n

The Mango board and the government will now place the company in business rescue, and consultation with labour groups are underway.<\/p>\n

\"Guy<\/a>

Guy Leitch<\/p><\/div>\n

Speaking to Biznews<\/strong><\/a> about Mango\u2019s troubles, SA Flyer\u2019s Guy Leitch said Mango has continued to lose market share since the pandemic started.<\/p>\n

\u201cMango\u2019s share of the pie has decreased from around 40% to nothing at this stage. It\u2019s operating two, possibly three aircraft in total,\u201d said Leitch.<\/p>\n

He added that people don\u2019t want to book on Mango because their flights get cancelled so often.<\/p>\n

\u201cIf the airline is at any risk of cancelling their flights, people are simply going to look elsewhere, particularly in such an intensely competitive market,\u201d he said.<\/p>\n

South Africa is a competitive low-cost airline market, with FlySafair, Kulula, and Lyft offering services on popular routes.<\/p>\n

\u201cThere\u2019s a glut of seats, and there\u2019s price-cutting. So, there\u2019s no real margin opportunity for Mango there either,\u201d Leitch said.<\/p>\n

\"\"<\/a><\/p>\n

The bad news for Mango ticket holders is that they may join the line of other creditors.<\/p>\n

\u201cThey\u2019re going to enjoy what the industry so beautifully calls the cold comforts of the concurrent creditor. They\u2019re probably going to get this ghastly haircut,\u201d he said.<\/p>\n

Further bad news is that ticket holders and creditors mustn\u2019t expect too much back in compensation, as there may be nothing left to pay.<\/p>\n

\u201cSAA concurrent creditors got seven cents out of the rand, and even then, they\u2019re struggling to get by that. I suspect Mango\u2019s concurrent creditors are going to get much the same sort of haircut.\u201d<\/p>\n

Now read: Mango Airlines to be placed into business rescue<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

Mango Airlines has suspended all flights and services and is set to be placed under business rescue.<\/p>\n","protected":false},"author":23,"featured_media":395531,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[29366],"tags":[71150,71152,69185,35,2402,71148],"class_list":["post-407802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-air-traffic-navigation-services-atns","tag-airports-company-of-south-africa-acsa","tag-guy-leitch","tag-headline","tag-mango","tag-william-ndlovu"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/407802"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=407802"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/407802\/revisions"}],"predecessor-version":[{"id":407836,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/407802\/revisions\/407836"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/395531"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=407802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=407802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=407802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}