Mango Airlines to undergo structured closure after rescue collapse

JOHANNESBURG — 1 August 2025

South African low-cost carrier Mango Airlines is set for structured closure after its final rescue deal collapsed.

The decision follows Ubuntu Air’s withdrawal from investment talks on 31 July, which cited “regulatory gridlock delaying approvals”, “uncertainty over relaunch timelines”, and “a failed funding partnership”. This was Mango’s last viable option to avoid shutdown (business rescue practitioners’ statement).

Mango’s Business Rescue Practitioners now propose a structured wind-down, allowing creditors 12.18 cents per rand owed. Liquidation would yield only 2.68 cents due to SARS priority claims and costs.

Approximately R383 million cash remains for partial creditor payouts. “The structured wind-down allows for a controlled exit while preserving as much value as possible for creditors,” said one BRP source.

The airline, founded in 2006 as SAA’s budget arm, has been grounded since 2021. Expired licenses and no active fleet now prevent any restart.

Creditors will vote shortly on the wind-down recommendation, likely ending the carrier that once provided affordable domestic flights.

Mango’s failure adds to South Africa’s aviation industry challenges, renewing concerns about state-backed airlines and investor climate.