South African Court Rejects Minister’s Appeal, Urges Decision on Mango Sale

The High Court in Pretoria, South Africa, has rejected Public Enterprises Minister Pravin Gordhan’s request to appeal a previous order mandating him to make a decision within 30 days regarding a ZAR326 million rand (USD17.25 million) binding offer for Mango Airlines. The offer, presented by South African consortium Ubuntu Air Services, emerged ten months ago, and the court ruled on September 6 that Gordhan’s delay in deciding was unreasonable and unconstitutional.

The state-owned budget carrier Mango Airlines, a subsidiary of South African Airways, is currently in business rescue. The court’s recent dismissal of the minister’s appeal, coupled with a requirement to pay costs, emphasizes the urgency for Gordhan to act on the binding offer promptly.

The judge commented that the appeal did not meet the requisite threshold, stating that it would lack reasonable prospects of success in a substantive application. Mango, its business rescue practitioner Sipho Sono, and Numsa, South Africa’s largest trade union, had all opposed the ministry’s attempt to appeal.

The ministry’s reluctance to approve or reject the bid raises concerns, and the continued delay could lead to the necessity of winding down Mango if the sale attempt fails. While Gordhan has expressed the desire to review Ubuntu Air Services’ business case before making a decision, Sono remains cautious about sharing such information, citing potential competition concerns with the resurrected Mango operating independently from South African Airways.

The court’s decision emphasizes the need for decisive action in the matter and reinforces the urgency for the resolution of Mango Airlines’ business rescue status.