Mango Airlines, a low-cost, state-owned subsidiary of South African Airlines, has suspended flying until further notice due to its inability to make required payments to the country's air traffic control entity.
Mango called the suspension "temporary" in a statement Wednesday and added that it plans to resume normal operations as soon as possible.
"Senior management and our shareholder are locked-in in emergency discussions to find an amicable solution to this impasse," the carrier said.
Mango is based in Johannesburg and typically serves six other South African destinations as well as the Tanzanian island of Zanzibar.
On July 27, acting CEO William Ndlovu said that the carrier is working out details to place itself under business rescue, the South African equivalent of Chapter 11 bankruptcy.
Mango parent South African Airways emerged from business rescue in April but remains grounded. The airline is pointing toward a relaunch, though timing is indefinite. Initial focus will be on cargo flights before resuming passenger service, the carrier said on July 27.
In June, the South African government announced it will relinquish control of South African Airways to a private company. The government signed a memorandum of understanding for the sale of 51% of the airline to a private business consortium, Takatso.