Mango Airlines Sale to Ubuntu Aviation Set to Proceed After Supreme Court Ruling

Mango Airlines’ business rescuer has confirmed that the sale of the South African budget airline to Ubuntu Aviation Consortium will advance following a decisive ruling by the Supreme Court of Appeal (SCA). The court dismissed the government’s appeal against a High Court order that mandated a decision on the sale, effectively ending the government’s attempts to halt the process.

The SCA’s dismissal on March 14, which included costs against the petitioners – the ministers of finance and public enterprises, the National Treasury, and the Department of Public Enterprises – highlighted the lack of a reasonable prospect for the appeal’s success. This ruling paves the way for the business rescuer, Sipho Sono, to finalize the sale agreement with Ubuntu Air Services, a decision long awaited since the offer was accepted on August 26, 2022.

Despite previous legal obstacles and delays necessitated by Public Enterprises Minister Pravin Gordhan’s hesitance, citing the need for more details on the bidder’s proposal, the sale is now poised to move forward rapidly. Ubuntu Air Services, supported by AfricaStay, views the acquisition of Mango as a strategic move to diversify and enhance its tourism and travel offerings in South Africa and beyond.

The sale’s terms involve a symbolic ZAR1,000 (USD53) for the airline’s shares, with Ubuntu assuming Mango’s ZAR169 million (USD9 million) in unflown ticket liabilities, converting them into vouchers. Furthermore, the agreement includes significant capital injections for startup, working capital, and potential expansion, with plans to sell one of Mango’s aircraft engines as part of the strategy to address creditor claims.

This development marks a significant milestone in Mango Airlines’ journey towards revitalization under new ownership, promising a fresh start for the carrier and its stakeholders. With the Supreme Court’s ruling, the focus now shifts to the swift implementation of the sale and the revival of Mango Airlines as a key player in South Africa’s aviation sector.