Mango Airlines, South Africa’s low-cost carrier, is on the verge of shutting down for good after its last hope of survival collapsed. The investor expected to revive the struggling airline has officially pulled out, leaving the company with no option but to wind down operations.
In a circular released by the Business Rescue Practitioners (BRPs), it was confirmed that the planned investor, known as Ubuntu Air, has withdrawn from the rescue process. Ubuntu Air had been positioned to take over Mango by acquiring the remaining shares from South African Airways (SAA), which is the sole shareholder of Mango. Unfortunately, the deal has now fallen apart, ending years of attempts to save the airline.
Mango, which was launched in 2006 as a low-cost subsidiary of SAA, entered voluntary business rescue on 28 July 2021. The BRPs were appointed in August of that year with the mandate to stabilise the business, restructure debts, and attract new investment. However, the process faced numerous setbacks, including government delays, legal battles, and a lack of financial support from SAA, which itself was struggling to survive and secure a buyout.
The BRPs explained that the deal collapsed after Ubuntu Air expressed doubts about the transaction. According to them, the delays made restarting Mango’s operations unrealistic, while the commitment from another funding partner could not be secured. On 31 July 2025, the investor formally informed the practitioners that it would not continue with the deal.
The original plan had been for Ubuntu Air to recapitalise Mango, inject new funds, and bring the airline back into operation as a privately-owned carrier. But the plan faced resistance from various quarters. The Department of Public Enterprises, which previously oversaw SAA and its subsidiaries, clashed with the BRPs over the details of the deal. More recently, creditors of Mango also raised objections, arguing that their rights were being undermined by the rescue plan.
Under the business rescue plan, creditors were asked to take huge cuts on debts owed to them, accept a non-guaranteed top-up payment after the sale, and give up their rights to claim later. Many creditors challenged this arrangement in court, which stalled the process further. Although the investor initially agreed to wait for up to three months, the growing uncertainty proved too much, and the withdrawal came earlier than expected.
With the exit of the investor, Mango Airlines has no chance of returning to the skies. The BRPs have now proposed a “structured winding down” of the company, instead of immediate liquidation. According to them, this approach would offer better returns for creditors compared to liquidation, where the South African Revenue Service (SARS) would take priority as a statutory creditor, leaving little for others.
The winding down process would still fall under the business rescue framework. It involves carefully managing available funds and distributing them to creditors in a fair and structured manner. The BRPs said that, under the amended plan, they anticipate paying an initial dividend of 70% of the projected payout to creditors within 30 days of adoption. The remaining balance would be paid over the next three to five months.
Financially, Mango Airlines is in a dire position. According to the latest review, the airline has no assets left but holds a cash balance of about R383 million. Tax filings for VAT and PAYE are up to date, but income tax returns are outstanding since 2022. SARS has already issued penalties of about R110 million for tax years 2019 to 2021, though these are being contested by the BRPs.
The shutdown of Mango Airlines is another heavy blow to South Africa’s aviation sector. The airline had once been a key player in the domestic market, providing affordable flights between major cities and competing with the likes of FlySafair and Kulula before financial troubles overwhelmed it. For many passengers, Mango was a symbol of accessible air travel, and its disappearance will leave fewer choices in a market where flight tickets are already becoming expensive.
As Mango prepares for its final chapter, questions remain about the broader challenges facing South Africa’s aviation industry, particularly the role of government in managing state-owned carriers, investor confidence, and the impact on workers and customers. While the BRPs insist that creditors will receive more through the structured wind-down than liquidation, the collapse of the rescue deal marks the end of a long struggle for the airline that once carried millions of South Africans across the skies.
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