| Refilwe Moloto speaks to aviation analyst Phuthego Mojapele about the latest blow to the aviation sector, now that low-cost airline Mango has had its air service license suspended for two years by the Air Services Licensing Council.
Mango Airlines has had its air service license suspended for up to two years by the Air Services Licensing Council.
The airline embarked on a voluntary business rescue last year.
The suspension, however, does not necessarily mean that Mango will never resume flying again, but rather a condition in which the airline would have to prove that it will be able to maintain its routes within the two-year deadline.
And if they can’t, their license will be permanently revoked.
However, this is not a concern, according to aviation analyst Phuthego Mojapele, who says revoking unused licenses leaves room for other players who need to use them.
It could also mean lower airfare prices due to more market players being able to join.
There is a lot of interest in the industry and very soon we will see a change, we will see the prices go down because there will be a lot of competition in the market. So it’s good for our economy, it’s good for the other players who want to come and tap into what’s already available on the market.
Phuthego Mojapele, Aviation Analyst
Listen to the full interview above.
This article first appeared on CapeTalk: What Mango’s license suspension means for SA’s airline industry