Mango placed under voluntary business rescue

The decision to place the airline under business rescue was handed down in the High Court in Johannesburg on Tuesday. 

But the decision has been met with anger by unions. 

The South African Civil Aviation Authority (SACAA), the National Union of Metalworkers South Africa (Numsa) and Mango pilots applied to have the airline placed under business rescue.

But the judge dismissed the application and instead allowed Mango to enter the process of its own accord.

SACAA president Zazi Sibanyoni says the judgment sets a dangerous precedent for the Company’s Act.

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“I think we’re absolutely shocked by this decision because of two fundamental reasons because this puts the Company’s Act into great question the way the law is written. This order basically means that a company can take a resolution to go into business rescue at any time, sit on it and allow the government as long as it needs to make any decisions that it needs to. 

“And whenever they're ready they can take it out of the back pocket and say they have taken a resolution. That’s what it means which is very very dangerous and sets a very dangerous precedent for the company’s act going forward. We are really worried about this judgment but we’ve become accustomed to judgements like this unfortunately and I think it’s something that South Africans.” 

Sibanyoni could not immediately confirm if the unions would appeal the ruling.

“We’ll be there every step of the way because our number one interest is to make sure that the process is fair and the outcome of it is fair.”