The Mango Pilots (MPA), the South African Cabin Crew Association (SACCA) and the National Union of Metalworkers of South Africa (NUMSA) have filled an urgent application with the High Court in Johannesburg to be heard on Tuesday the 3rd August 2021 to place the airline under business rescue.
The airline does not have sufficient cash reserves and desperately needs to be capitalised and failure by the Department of Public Enterprises (DPE) to provide funding has placed its future in jeopardy. The unions believe the department has no intention of keeping Mango in the sky.
NUMSA General Secretary Irvin Jim, says what has not been clear until now is why SAA, as Mango’s shareholder, so desperately needs the unions to withdraw their urgent business rescue applications? Based on their actions they can presume the SAA board and the DPE have decided that Mango must die, so that Lift, its competitor can dominate as a low cost carrier. Global Airways is a partner of the Takatso association, which is due to take over at SAA.
The MPA President Jordan Butler says they will not be intimidated by the underhanded tactics; they will have their own day in court. Now that the shareholder’s true intentions are clear, it is even more imperative that they have a seat at the table in the business rescue process. They will not give up.
The unions have accused SAA interim CEO Thomas Kgoloko of deliberately withholding shareholder funding from SAA to Mango to pay staff salaries.
The unions have also invited all creditors to join their application and the response has been extremely positive with several creditors joining them in their application.