Big trouble for FlySafair

Domestic airline FlySafair has reportedly received another finding against it by local authorities over its ownership structure, the second in as many months, potentially jeopardising its future operations.

The group reportedly confirmed to News24 that the Air Services Licensing Council (ASLC) sent a letter earlier in December saying that the group was non-compliant with ownership regulations.

In November, the International Air Services Licensing Council (IASC) ruled that the airline’s ownership arrangement does not align with South African legal requirements.

Under current law, foreign entities are limited to a 25% ownership stake in South African airlines, yet FlySafair’s main shareholder, Ireland-based ASL Aviation Holdings, reportedly holds a 74.86% stake.

The scrutiny of FlySafair’s shareholding structure began in October 2022 after complaints by Airlink and Global Aviation, the latter operating under the brand LIFT.

These complaints raised concerns that FlySafair’s foreign ownership exceeds the permissible limits and questioned the airline’s adherence to local regulations.

According to FlySafair’s financial records, ASL Aviation Holdings’ majority stake indicates that FlySafair’s primary ownership resides abroad, a configuration that raised regulatory concerns, especially since FlySafair did not apply for an amendment to its air service license after restructuring in March 2019.

FlySafair has maintained that it is committed to regulatory compliance and transparency, and has been working to interdict the IASC’s ruling.

The group previously noted that the scrutiny pertains only to its international routes, leaving its domestic flights unaffected.

Its domestic services are governed under a different licensing framework, meaning passengers on local flights can continue flying without concern.

The group told BusinessLive that the latest ruling would not disrupt its operations and that it would consider legal recourse if necessary.

Read: South Africa’s biggest airline could be grounded – FlySafair responds