MIAMI – On July 26, Mango Airways (JE), a low-cost subsidiary of South African Airways (SA), announced that its operations would continue. However, the following day JE announced the suspension of all flights until further notice.
The carrier, which is in dire financial straits since last year, has again stopped its services because of the non-payment of navigation services fees supplied by ATNS (Air Traffic Navigation Services). JE has indicated by a press release published today July 27 that the airways management and shareholders are in an emergency meeting in order to find an amicable solution to the issue.
Business Protection Plan
JE has already applied for a business protection plan, the South African version of Chapter 11 protection, notwithstanding having received state aid in the amount of US$182.5m (SAR2.7bn). The carrier has been unable to pay its 700 workers’ wages with no deadline on payment resumption.
The airline has already run into deep financial troubles on April 28 when, because of nonpayment of airport fees, was compelled to cease all operations and ground all flights. Besides the payment difficulties, JE was already set to cease operations in May 2021, on request from its aircraft lessor, but was finally rescued by South African government aid.
Article sourced on Mango Press Releases and news.pindula.co.zw
Featured images: Mango Airways Boeing 737-8 ZS-SJA. Photo: Michael Combrink/Airways