Mango Airlines in South Africa at Risk of Closure After Investor Pullout

Mango Airlines, the South African low-cost carrier, is facing its final curtain call as an investor has withdrawn from the buying process. This news follows the issuance of a circular by the South African Business Rescue Practitioners (BRP). The investor, identified as Ubuntu Air, has decided against proceeding, citing ongoing legal and regulatory hurdles.

Established in October 2006, Mango Airlines operates as a budget subsidiary of South African Airways (SAA). It was created to compete with other local low-cost airlines like Comair and FlySafair on popular routes between Johannesburg OR Tambo International Airport (JNB), Durban, and Cape Town, in addition to other domestic and regional destinations. At one point, the airline boasted a fleet of 16 Boeing 737-800s.

Despite its initial success, Mango Airlines encountered fierce competition and financial difficulties exacerbated by the pandemic, leading to a depletion of its operating cash in July 2021. This prompted the airline to seek voluntary business rescue measures. By August 2021, the BRP took charge of the airline’s remaining assets in hopes of finding a buyer. However, the process has been mired in challenges, including complex negotiations with the government, pending legal claims, and uncertainty regarding future investments, all of which hampered the search for a new investor.

Challenges Faced by Mango Airlines

Initially, it was anticipated that South African Airways would bail out its struggling subsidiary. However, due to SAA’s own prolonged financial issues, it was unable to provide necessary support or funding for Mango. Consequently, Mango’s fate rested on securing financing from a third-party investor who could stabilize the business.

“On July 31, 2025, Ubuntu Air informed us they no longer wished to proceed with the transaction,” the BRP stated. “The delays have rendered the resumption of operations unrealistic, and securing the commitment from other funding partners was not feasible.”

Under the proposed business rescue plan, Ubuntu Air was to purchase the remaining shares from South African Airways, transforming Mango into a privately-owned entity. The plan included recapitalizing the airline, enabling it to resume full operations.

Conditions Imposed by Ubuntu Air

One significant condition set by Ubuntu Air was that Mango’s creditors would need to forfeit a substantial portion of their debts and agree to a non-guaranteed payout after the transaction. This aspect faced legal challenges, leading to the halting of the rescue plan in July 2025 and compelling Ubuntu Air to withdraw.

With the prospect of salvaging Mango Airlines now slim, the BRP views a structured winding down as the most viable option rather than immediate liquidation. This winding-down process is part of the broader business rescue strategy and does not solely hinge on whether the airline can return to operation.

“In a business rescue scenario, the projected payments to concurrent creditors exceed those in a liquidation scenario,” the BRP explained. “The South African Government will prioritize its claims, minimizing recoveries for other creditors.” The BRP plans to amend the Business Rescue Plan to facilitate this structured winding down, with hopes of paying an initial dividend to creditors soon after.

As per the latest company financial review, Mango Airlines currently holds no assets but has a cash reserve of approximately R383 million (around $21.7 million).