Africa-Press – South-Africa. The Johannesburg South High Court, on Friday, reserved judgment until Wednesday on the application by organised labour to have struggling airline Mango placed under business rescue instead of being liquidated, as proposed by the no-frills carrier’s representation.
This comes as Irish company, Aergen Aircraft Four, withdrew their liquidation application for Mango over the R56 million debt in mutual interest with unions for the airline to be placed under business rescue.
Aergen Aircraft Four had approached the court in April to wind up the airline for debts after failing to honour its obligations for a 2014 deal, in which it leased two Boeing B737-800 aircraft.
The Mango Pilots Association (MPA), the South African Cabin Crew Association (Sacca) and the National Union of Metalworkers of South Africa (Numsa) recently approached the court to rescind liquidation processes and sought the appointment of Ralph Lutchman as the business rescue practitioner.
The airline, which has admitted it does not have sufficient cash reserves and desperately needs to be capitalised, said in an responding affidavit it had been affected by the Covid-19 pandemic restrictions, and impact on travel, which has reduced its operating profits to an operating loss in the current year, along with its fleet of airplanes from five to two currently.
The judge heard both arguments, and said he would make a ruling by Wednesday. In the meantime, judgment was reserved.
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