Cape Town – Employees at South Africa’s low-cost airline, Mango, have shed light on their living conditions after they last received their wages in May.
Mango, a subsidiary of South African Airways (SAA), has been faced with financial constraints for nearly a decade.
Last month the airline was granted permission by the Johannesburg High Court to go into business rescue on a voluntary basis, leaving it with bigger decisions to make.
According to Fin24, this means Mango has a bigger say in who gets appointed as its business rescue practitioner.
“The boards of SAA and Mango took a resolution to place the low-cost airline under business rescue due to financial and operational challenges.
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“The decision is good news for all stakeholders in the aviation industry as it brings certainty to the process that will unfold to restructure Mango and ensure we have a sustainable aviation asset that will service the low-cost market in the country,” the reported quoted the Department of Public Enterprises as saying at the time.
But according to Eyewitness News, the cash-strapped airline has left its employees without salaries, a situation that has since forced some of them to move in with their family members, as they have lost their assets.
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One of the employees who has been with Mango for five years reportedly said she had lost her house, car, medical insurance, and life insurance policies for her son, and her grandparents were now caring for her with their meager pension funds.
Meanwhile, Mango urged its workers to embrace the business rescue.
“We urge all to embrace this process to ensure that it achieves its sole purpose which is, for the business to be rescued. We plan to resume normal operations as soon as possible and apologise for the inconvenience caused,” tweeted Mango Airlines SOC Ltd Interim Chairperson, Bembe Zwane.
We urge all to embrace this process to ensure that it achieves its sole purpose which is, for the business to be rescued.
We plan to resume normal operations soon. We apologise for the inconvenience caused.
Mango Airlines SOC Ltd Interim Chairperson,
Ms. Bembe Zwane— Mango Airlines (@FlyMangoSA) August 12, 2021
Last month, the airline suspended all its flights and services “until further notice”.
The airline said at the time that it owed money to air traffic navigation services.
SAA’s CEO Thomas Kgokolo confirmed that the carrier was facing financial constraints.
“The situation at Mango is quite unfortunate. We are aware at a group level that there are delayed salaries and what we can say is that the board and shareholders have agreed that mango will go into business rescue.
“We are currently consulting… in terms of how we can manage that particular process,” Kgokolo said, according to eNCA.
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Compiled by Sinothando Siyolo
