In a recent development, the High Court in Pretoria, South Africa, has made a significant decision regarding the future of Mango Airlines, a state-owned budget carrier and subsidiary of South African Airways (SAA). Public Enterprises Minister Pravin Gordhan’s request for permission to appeal a previous court order has been dismissed with costs.
Background
The court order in question, issued on September 6, had compelled Minister Gordhan to make a decision within 30 days regarding a ZAR326 million rand (USD17.25 million) binding offer for Mango Airlines from South African consortium Ubuntu Air Services.
This offer had emerged ten months ago, and the delay in making a decision was deemed unreasonable and unconstitutional by the court.
Despite the ministry’s appeal to put the implementation of the court order on hold, the attempt has now been struck down. Mango Airlines, its business rescue practitioner Sipho Sono, and Numsa, South Africa’s largest trade union, had all opposed the ministry’s attempt to appeal.
Implications of the Court Decision
It is worth noting that if the attempt to sell Mango Airlines fails, Sipho Sono is likely to have to wind down the company. The judge emphasized that the ministry had failed to meet the threshold for leave to appeal to be granted, as the appeal would not have reasonable prospects of success in a substantive application.
Sipho Sono, when asked for comment, expressed his stance on the matter and highlighted the court's decision. He emphasized the need for Minister Gordhan to make a decision as per the court order.
Minister Gordhan has previously stated his desire to review the business case of Ubuntu Air Services before making a decision. However, concerns have been raised about sharing such information, as a rescued Mango Airlines would then go on to compete independently with South African Airways.
Future of Mango Airlines
This ruling has significant implications for the future of Mango Airlines and the ongoing business rescue process. It underscores the importance of timely decision-making in matters of corporate restructuring and state-owned enterprises.
As the situation continues to unfold, stakeholders will be closely watching for Minister Gordhan’s decision and its impact on the aviation industry in South Africa. The outcome of this case will undoubtedly shape the future trajectory of Mango Airlines and its role within the broader aviation sector.
(This article is sourced from ch-aviation.com and curated by Thetransporteronline24)
