Answer to Question #155356 in Macroeconomics for Karabo Chesane

Question

Elaborate on five current issues that have had an impact on impact the operations of Mango airline

Answer 1

1. Bankruptcy - The airline was declared financially broke and placed under bankruptcy protection in December 2019 which led to the suspension of its airlines to a few European countries and oversaw an overhaul process as a result.

2. Covid-19 Pandemic - Coronavirus impacted a massive number of businesses, travel, and hospitality industries were among the worst affected. With bankruptcy on its shoulder, the airline faced another setback when the Government decided to stop funding the company due to the pandemic. All the remaining employees were subsequently laid off.

3. Maintainance Issues - A large number of airlines including South African Airways was grounded for a significant time after technical issues were found on the plane carriers. Those issues were kept confidential due to an agreement of confidentiality in place but it affected its operations temporarily in late 2019.

4. Strike by Employes and Members - A two-day strike was maintained by the employees and members of the airlines over non-payment of dues. On-ground operations were completely paused. The strike started on November 15, it had jeopardized the company and travelers' plans during the course of the period.

5. Re-suspension - While the Airways was planning to fly again after the lockdown period, its plans had taken a hit again after the operations were shut off due to the persisting financial issues. It was said that the company was on the verge of liquidation. The Government is trying to auction the airline to foreign bidders as a rescue move.