Investment withdrawal spells downfall for Mango Airlines' rescue strategy
Mango Airlines, a long-standing low-cost carrier in South Africa, is facing closure after its potential rescue investor, Ubuntu Air, withdrew from the deal. This decision leaves Mango without the capital and investor commitment needed to resume flights, following a four-year business rescue period and a grounding since July 2021.
The withdrawal by Ubuntu Air, which occurred on July 31, 2025, was due to prolonged negotiations and concerns over delays, funding uncertainties, and an unrealistic timeline for restarting operations.
Mango's financial struggles have been compounded by a loss of its air operator license in 2022, mounting debts totalling around ZAR 6.4 billion (USD 362.8 million), outstanding tax liabilities, legal disputes, and insufficient state aid. A revised rescue plan, which involved Ubuntu Air acquiring Mango from South African Airways (SAA) and launching a joint venture, was rejected by a court due to creditor objections, particularly from Aviation Co-ordination Services (ACS).
Industry analysts are commenting on this development, suggesting that Mango's closure highlights the struggles faced by South Africa's aviation sector, where low-cost operators are finding it increasingly difficult to survive due to rising costs, regulatory hurdles, and investor uncertainty.
In light of these challenges, Mango is now proceeding with a structured wind-down, where remaining assets will be sold or redistributed to creditors in an orderly way instead of outright liquidation. This process aims to maximize creditor returns but effectively ends Mango’s hopes of returning to the skies.
The closure of Mango Airlines is significant because it was a major low-cost carrier that helped keep domestic and regional airfares affordable and accessible. Its disappearance is likely to reduce competition, increase ticket prices, and impact domestic tourism and regional connectivity.
The Business Rescue Practitioners (BRPs) are expected to provide further guidance for passengers and creditors holding claims in the coming weeks. This marks the end of a turbulent chapter for the once-popular budget carrier, Mango Airlines.
Read also:
- Catastrophic blast at a US Steel facility in Pennsylvania causes 2 fatalities, inflicts injuries on 10 individuals
- Weekly developments in the German federal parliament, the Bundestag
- Solar Shutdown: Merz Proposes Billions of Gas Discharge - Reverse Plan
- New guidelines for NEPA processes unveiled by federal agencies, in alignment with Executive Order 14154 and the Seven County Decision of the Supreme Court
