The Congress of South African Trade Unions (COSATU) has voiced its deep distress following the unanticipated collapse of low-cost carrier Mango Airlines, attributing the airline’s impending cessation to a combination of mounting debt and an absence of financial backing from the government. The union’s national spokesperson, Zanele Sabela, revealed stark concerns regarding the loss of 501 jobs, a devastating blow in a nation grappling with high unemployment rates.
Sabela, speaking on YOU FM Newshour, expressed disappointment over the failures of the Business Rescue Practitioner (BRP), Sipho Sono, in his attempts to salvage the airline. “In a country where unemployment is so high, we still experience further unemployment such as this due to the failure of BRPs to rescue the company,” she said. “People were hopeful that they would be called back to work but it is unfortunately not happening.”
The recent decision marks a tragic turn for Mango Airlines, which had managed to resume operations post-COVID-19, even at times outperforming its parent company, South African Airways (SAA). Sabela reminisced about the government’s lack of financial assistance during a crucial period, stating, “When we emerged from the pandemic, Mango Airlines was able to soar the skies again… But the government could not assist during a troubling time, and now we are aware that the BRP, Sono, has informed us that the company may not take to the skies again.”
Initially placed under business rescue due to its growing debt, MANGO Airlines’ circumstances have deteriorated over four years without any viable turnaround plan materialising. Sabela placed significant blame on Sono for the lack of progress, noting, “It took him four years…four years to come to that decision was too long.” She highlighted a failed prospective takeover by Ubuntu Air services, which was heralded as the possible saving grace for the airline but ultimately fell through.
In a pointed critique of Sono, Sabela said: “He is maintaining that a structured wind down will ensure creditors get more out of a rand than a liquidation would, while he is smiling all the way to the bank having earned a cool R11 million from the unsuccessful rescue of Mango.” This sentiment reflects growing frustration over a perceived mishandling of resources and opportunities to keep the airline afloat.
Furthermore, Sabela indicated that Sono’s failure extended beyond Mango Airlines, affecting the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (CEPPWAWU), which he has overseen since June 2020. “The court ordered him to appoint a reputable facilitator to convene congresses as per the union’s constitution,” she noted, yet despite this directive, Sono remains in place, obstructing the necessary leadership transition while drawing exorbitant fees.
