The Department of Public Enterprises (DPE) has welcomed the High Court judgment to place airline Mango under business rescue, effective from 28 July 2021.
The High Court in Johannesburg made the judgment to place the airline under business rescue on Tuesday.
This follows a resolution by the Boards of South African Airways (SAA) and Mango to place the low-cost airline under business rescue due to financial and operational challenges.
The department said the decision is good news for all stakeholders in the aviation industry, as it brings certainty to the process that will unfold to restructure Mango and ensure a sustainable aviation asset that will service the low cost market in the country.
“The restructuring of the SAA subsidiaries, Airchefs (Section 189) South African Airways Technical (section 189) and Mango will ensure that once restructured, the SAA Group will have ‘fit for purpose’ subsidiaries that will support and become the conduit for growth of the aviation industry in the country,” the department said in a statement.