FlySafair’s Ownership Breach: Licensing Authority Warns of ‘Catastrophic’ Industry Impact

SA’s Domestic Aviation Authority Reaffirms FlySafair’s Ownership Breach, Threatening the Airline’s Future

FlySafair’s Ownership Breach: FlySafair finds itself in the spotlight yet again, this time due to a significant breach of local aviation laws. The airline’s foreign ownership structure has been deemed non-compliant by SA’s domestic aviation licensing authority, which could have “catastrophic” consequences for the broader industry.

SA’s Aviation Authority Deems FlySafair’s Ownership Non-Compliant

The dispute centres around FlySafair’s trust-based ownership model, where a majority of the voting rights are held by trusts and companies rather than individual South African residents. According to South African Civil Aviation regulations, at least 75% of the voting rights in a domestic airline must be held by “natural persons” — a requirement that FlySafair’s structure does not meet.

ASLC Warns of Potential Sanctions and Operational Risks

The Air Services Licensing Council (ASLC), part of the Department of Transport, has made it clear that this non-compliance could result in severe sanctions, including grounding FlySafair’s operations unless the airline can rectify the situation within a limited time frame. FlySafair, however, argues that the trustees of its trust are South African residents and should comply with legal requirements.

FlySafair’s Argument: Trustees Are South African Residents

Kirby Gordon, FlySafair’s spokesperson, has criticized the decision, calling it “highly irregular” and warning that this interpretation could set a dangerous precedent. He also pointed out that such rulings could place the majority of South Africa’s domestic aviation capacity at risk, putting hundreds of jobs and passenger flights in jeopardy.

Industry Concerns and Rival Airlines’ Reactions

The airline’s predicament has sparked concern across the aviation industry, with rival carriers like LIFT and Airlink voicing their support for the ASLC’s stance, while FlySafair prepares to challenge the ruling in court. The matter reflects broader tensions surrounding foreign ownership in South Africa’s aviation sector, which has long been governed by strict local control laws.

Also read: National Consumer Commission Probes FlySafair for Overbooking Violations