Mango Airlines Employees Say They Have Recieved Pay Cuts, Company Under Business Rescue
- Mango Airline's application to undergo voluntary business rescue was granted by the Johannesburg High Court
- The company is said to be experiencing financial constraints and its decision to go under rescue was made by Mango Airlines and SAA
- The airline's employees have shared their grievances and stated that they have not received their full pay checques since May
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JOHANNESBURG - With Mango Airlines now under business rescue, some of the employees have come out to speak about their current struggles working for the airline.
According to a report by EWN, Mango employees are barely surviving financially, stating that they have not received their full salary since May. Some employees also stated that before May, they had been given pay cuts.
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A woman who says she's worked for Mango Airlines for five years says her financial situation has become dire. She has had to move in with her 90-year-old grandparents. She stated that she can longer afford medical aid and life insurance policies and has lost her house.
"I’m just grateful now cause I’m staying with my grandparents, who are 90," she said.
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The employee also shared her concerns about the possibility of job losses as Mango Airlines undergoes business rescue.
"I don't think they know what we are going through. As we enter the business rescue, I'm hoping that jobs will be saved," she added.
Mango Airlines goes under voluntary business rescue
Mango airlines made an application at the Johannesburg High Court to go into voluntary business rescue. The application was granted last Tuesday, according to a report by Fin24.
Mango was given the opportunity to appoint the overseer of the business rescue and appointed Sipho Sono. Mango is undergoing business rescue due to financial constraints the company has been experiencing.
According to the Department of Public Enterprises, the decision to take this route of recourse was made by both South African Airlines and Mango.
Business News: SAA skeletons come to light during acquisitions
In other airline news, Briefly News reported that issues have come to light due to the sale between South African Airways (SAA) and the Takatso Consortium, which is seeking a 51% share in the embattled airline.
31 March, 2017 marks the last time SAA audited financials for the end of the year. The Auditor-General failed to complete any audits during the business rescue process. Draft financial statements for the years 2018 and 2019 were sent to Parliament in 2020 by the BRPs.
At the Scopa meeting held on 25 March, it was obvious that the financial statements for the end of 2020 were not complete despite the 2021 financials being due.
The due diligence between SAA and Takatso still needs to be implemented and run. SAA’s intangible assets, such as the Star Alliance and its brand, could hold some weight in terms of value while the route, flight and staffing plan will be decided.
Source: Briefly News
