Serious accusations against South Africa’s largest airline

 ·19 Jan 2025

FlySafair is accused of flouting local and international airline rules, unlawfully overbooking seats, and using dirty tricks to avoid compensating customers.

CemAir CEO Miles Van Der Molen told Biznews there is mounting evidence that FlySafair has broken the rules to gain an unfair advantage in the local aviation market.

The first problem is ownership. South Africa’s Air Services Licensing Act stipulates that domestic airlines must have at least 75% local ownership.

The International Air Services Act requires substantial local shareholding, which is widely accepted to be above 50%.

FlySafair is 74.86% owned by ASL Aviation Group, which seems to be prima facie evidence that it has broken these rules.

South Africa’s Air Services Licensing Council ruled that FlySafair does not comply with the Air Services Licensing Act.

The International Air Services Council (IASC) also ruled that FlySafair’s shareholding structure was not compliant with the law.

It said the company structure comprised a 49.86% shareholding by the Safair Investment Trust, which is 100% owned by ASL, in addition to the 25% direct ASL shareholding.

The IASC also ruled that FlySafair failed to apply for an amendment of its air service licence when its ownership structure changed in March 2019.

The two councils are expected to announce their sanctions soon, which may include suspending FlySafair’s license, imposing fines, or even filing criminal charges.

Should FlySafair planes be grounded, it would wreak havoc on the local aviation sector and leave many local and international travellers stranded.

Despite the significant impact of such a decision, Van Der Molen said an airline cannot break the rules without repercussions.

“Convenience cannot come above the law. If FlySafair isn’t complying, that has to be dealt with,” he said.

“Yes, it would be a shock to the market, but they have gained a dominant position by using tactics they shouldn’t have. The law should be upheld.”

FlySafair overbooking investigation

Cemair CEO Miles Van Der Molen (left)

The second problem is overbooking. FlySafair clients complained about being stranded despite having paid for a seat.

The airline admitted that it overbooked flights, arguing that it was to ensure it could keep its tickets as affordable as possible for passengers.

However, overbooking is prohibited by the Consumer Protection Act, which prompted the National Consumer Commission (NCC) to launch an investigation.

The NCC said it had established communication with the airline and requested relevant information to kick-start the investigation.

FlySafair responded to the investigation by saying that overbooking is a standard and globally accepted practice employed by airlines.

They argued it was needed to manage operations efficiently, mitigate the financial impact of no-show passengers, and keep air travel affordable.

“This practice has been used by all local airlines, past and present, as well as international carriers selling tickets to South African consumers,” it added.

“FlySafair applies this principle in a responsible and customer-centric manner, ensuring that we balance efficiency with fairness,” it said.

Van Der Molen said this is a lie. Many airlines, including Cemair, have released statements saying they don’t overbook flights.

“Our understanding is that it’s not allowed. For FlySafair to go out and claim that everyone does it is concerning. It’s very misleading,” he said.

Even more concerning is that he said FlySafair applies dirty tricks to ensure passengers in overbooked flights are left stranded.

“If you have a long check-in queue, the airline can manipulate the system,” Van Der Molen said in the Biznews interview.

“If they know the flight is overbooked, they can manage the check-in rate to achieve the outcome they want. But that’s not ethical.”

When this happens, they do not have to compensate customers, which bolster the bottom line.

BusinessTech asked FlySafair for comment about the accusations, but the company preferred not to comment.

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