Mango Airlines are cutting their employees’ salaries by up to 50%. According to Public Enterprises Minister Pravin Gordhan, the purpose of these pay cuts is to assist SAA financially, beyond the end of May.
In a briefing, Gordhan told Parliament that all salary cuts have been taken voluntarily and are based on pay grades, which indicated that those being paid the least would have the smallest cut.
‘Mango has been a reasonably well-run airline and we are waiting to see what kind of developments there are, both domestically and globally, in respect of low-cost airlines and what their future is,’ said Gordhan.
SAA’s financial troubles have heavily impacted the airline. According to Peter Attard Montalto, head of capital markets research at Intellidex, a fire sale of Mango is possible. This is in light of hope for a new state airline, according to IOL.
A spokesperson from Mango was able to confirm that salary cuts are happening. Official communication from the airline, however, is yet to be made.
Attard Montalto added that South Africa remained a top destination, therefore capacity would not be an issue for Mango domestically.
Image Credit: Twitter / FlyMangoSA
