Mango ‘not to blame for 1time'

Published Nov 6, 2012

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Public Enterprises Minister Malusi Gigaba on Tuesday dismissed reports that low cost airline Mango was the cause of 1Time's collapse.

“The allegations made by Mr Venter, CEO of Comair Ltd, including citing Mango as the cause of 1Time's demise with over 1000

employees as collateral damage, are serious in nature and designed to cause commercial harm to Mango as an entity, and by default the state,” he said.

Gigaba said his department was “disheartened” by the demise of 1Time and the subsequent job losses incurred.

“It is not only employees that are directly impacted, but also their families, along with up- and downstream community economies.”

1Time announced on Friday that it had applied for business liquidation, and that all of its flights had been grounded.

The firm had about R320 million in short-term debt and had been in negotiations with creditors since March.

In reaction to the news, Comair CEO Erik Venter said the low cost airline had closed because it operated a less efficient fleet.

“However, we are certain that in the absence of state-subsidised Mango, 1Time would have made adequate profits to upgrade its fleet and be sustainable over the long term,” Venter said.

Gigaba said Mango remained an entity operating independently from its shareholder, SA Airways.

“What should be clear from this is that Mango did not benefit from any capitalisation or guarantee issued in favour of its parent company, SAA, and in this regard there could not have been a market-distorting effect as insinuated,” he said. - Sapa

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