Mango Airlines Faces Final Closure After Rescue Deal Collapses

South Africa’s low-cost carrier Mango Airlines is set to undergo a structured closure, likely ending the airline’s four-year struggle to stay afloat.

The decision comes after potential investor Ubuntu Air withdrew from the business rescue process, leaving creditors to choose between a managed wind-down or a harsher liquidation.

Rescue Deal Falls Apart

Ubuntu Air, backed by tourism firm AfricaStay, formally pulled out of the deal on 31 July 2025, citing regulatory gridlock delaying approvals, uncertainty over relaunch timelines and a failed funding partnership that made continuation unfeasible.

The withdrawal came just weeks after a High Court ruling in June invalidated key parts of the existing business rescue plan, prompting revisions that could not attract new financial backing.

Creditors Face Crucial Decision

Mango’s Business Rescue Practitioners (BRPs) are recommending a structured wind-down under business rescue provisions as the best of two difficult options:

• Structured wind-down payout: 12.18 cents per rand owed
• Liquidation payout: 2.68 cents per rand, due to SARS priority claims and associated costs

The airline reportedly still holds approximately R383 million in cash, which can be used to facilitate partial creditor payouts within months.

“The structured wind-down allows for a controlled exit while preserving as much value as possible for creditors,” said a BRP source familiar with the process.

No Lifeline Left

With its licenses expired, fleet inactive and no buyer coming forward, Mango can no longer resume operations. Founded in 2006 as South African Airways’ (SAA) low-cost arm, the airline was grounded in 2021 due to financial strain and has since faced a turbulent journey through court disputes, regulatory hurdles and postponed rescue plans.

The End of the Runway

The failure of the Ubuntu Air deal eliminates Mango’s last real chance of revival, making a structured wind-down the most practical option. Creditors are now set to vote on the BRPs’ final recommendations, likely confirming the end of the airline that once offered affordable travel across South Africa.

Mango’s collapse adds to a growing list of South African aviation failures in recent years, highlighting ongoing concerns about the viability of state-backed carriers and the regulatory climate for private investors.