I think the most important thing out of all this is.....surely there is a better use for the money that is being spent on Mango. Just take a look around! I'm sure you'll think of something.
A government doesn't operate an airline to make money. It does it to provide a service to aid the development of the nation. In SA there are already enough private sector operators in the market to do this, and at a low cost (The only exception being the long haul market).
The government needs to move on and start/continue to develop other services that will benefit the development of the country.