Air Services Council finds FlySafair in violation of ownership regulations
SHARE POST:
South Africa’s International Air Services Council (IASC) has found FlySafair in violation of foreign ownership restrictions, casting a shadow over the airline just weeks after it marked a decade of operations. The Johannesburg-based low-cost carrier now faces unspecified sanctions, with details expected by the end of November.
FlySafair, a subsidiary of Ireland’s ASL Aviation Group, has an effective foreign shareholding of 74.86%. Yet, South Africa’s Air Services Act mandates that domestic airlines retain at least 75% local ownership, and the International Air Services Act requires a “substantial” local shareholding, commonly interpreted as at least 51%. FlySafair’s compliance has thus been a matter of dispute, particularly after the council flagged its structure: Safair Investment Trust holds 49.86% of FlySafair, with the balance ultimately owned by ASL Aviation, amounting to a 74.86% foreign stake.
This isn’t the first time FlySafair’s ownership has faced scrutiny. When the airline was launched in 2013, competitors like Comair and Skywise challenged its licensing on similar grounds. Today, FlySafair has expanded significantly, capturing nearly 60% of South Africa’s domestic market.
The IASC inquiry began in late 2022, following an ownership amendment application. Competitors Airlink and Global Airways, operator of LIFT, formally flagged FlySafair’s compliance with local ownership laws, prompting further investigation. FlySafair contends that its structure aligns with both the letter and intent of the law. Trustees of the Safair Investment Trust own 49.86%, with the remaining 25.14% held by B4i Safair, a local employee ownership scheme.
Responding to the IASC ruling, FlySafair reiterated its commitment to compliance: “We take the IASC’s decision seriously and await further communication. Supported by senior legal advice, we believe our structure remains within regulatory bounds.”
While the IASC manages international air service licensing, the Air Services Licensing Council (ASLC) governs domestic licensing under separate legislation. FlySafair now faces a separate challenge before the ASLC from rival Global Aviation.
Independent news and opinion articles with a focus on the Western Cape, written for a more conservative audience – the silent majority with good old common sense.
Interested in joining the movement? Find ways to get involved
GET NOTIFIED FOR NEW CONTENT
read more
Historic train returns to Mossel Bay after 16 years
A piece of history moves again as Sylvia the First returns to the Garden Route rails.
South Africa faces industrial gas shortage by 2028
South Africa faces economic risk as the Mozambique gas supply is expected to end, putting jobs and key industries under threat.
Parents turn to home schooling
Home schooling is on the rise in South Africa as parents look for affordable and dependable educational alternatives amid multiple challenges.
Long read | The elite’s 12-year plan to merge the DA and ANC, and how it went wrong
For over 100 years, trans-Atlantic elites have pursued a certain vision. And just as that vision finally swam into view, it dissipated.
The Double Standard of Free Speech in South Africa
Since Trump’s second term, there has been a shift to protect speech. However, in South Africa, we continue to see double standards.
Think clearly about informal housing fires in Masi and Cape Town
Informal settlements in Cape Town suffer fires due to lack of planning, regulations, and safety standards.
Hermanus councillor faces criminal charges after February’s meeting
MK’s attempt to remove self-determination from constitution will backfire, says CIAG
