Will Mango fly again? Business rescue practitioner caught out 'trying to pull a fast one' - Guy Leitch

Stephen Grootes interviews Guy Leitch, editor of SA Flyer Magazine.

The sale of Mango Airlines to a private investor has been blocked by a court ruling that its business rescue plan cannot be lawfully implemented.

The low-cost carrier, still a subsidiary of South African Airlines (SAA), has been in business rescue for close on four years.

Business rescue practitioner Sipho Sono said he would appeal the ruling handed down by the Gauteng High Court in Johannesburg.

SAA recently clarified that it has no authority or direct oversight when it comes to Mango’s 'financial obligations, current and future business plan'.

Ultimately, however, it does become the decision of government, says SA Flyer Magazine's Guy Leitch.

He decries the way the business rescue process has been handled and a perceived lack of transparency.

"Quite frankly, the whole deal still stinks.  And now we've seen, for the first price, the absolute miserable mess of the offer that they're making to the current creditors of just 4.43 cents in the rand."

Guy Leitch, Editor - SA Flyer Magazine

"I think Mr Sono is trying to pull a fast one, and actually the judge has confirmed that he's been trying to pull a fast one by effectively double dipping on the creditors by showing them off to the so--called investor and then leaving them open for another bite."

Guy Leitch, Editor - SA Flyer Magazine

It could be that government has been a little more confident than it should be because in the case of SAA, the business rescue process did work, Leitch says.

The aviation analyst adds that he doesn't understand why anyone would want to acquire Mango, considering its lack of assets.

"I cannot see any value in it whatsoever - it doesn't have a proper aircraft operating certificate, it hasn't got any aircraft because they were all leased and returned... so what possible value does the airline have unless it's some sort of deal being struck behind the scenes that we can't quite smell with the unions, because that's obviously where the greatest element of pain and a sense of recovery lies."

Guy Leitch, Editor - SA Flyer Magazine

To hear more from Leitch, listen to the interview audio at the top of the article