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.<\/p>\n\n\n\n
The group reportedly confirmed to News24 <\/strong><\/a>that the Air Services Licensing Council (ASLC) sent a letter earlier in December saying that the group was non-compliant with ownership regulations.<\/p>\n\n\n\n In November, the International Air Services Licensing Council (IASC) ruled that the airline’s ownership arrangement does not align with South African legal requirements.<\/p>\n\n\n\n Under current law, foreign entities are limited to a 25% ownership stake in South African airlines, yet FlySafair\u2019s main shareholder, Ireland-based ASL Aviation Holdings, reportedly holds a 74.86% stake.<\/p>\n\n\n\n The scrutiny of FlySafair\u2019s shareholding structure began in October 2022 after complaints by Airlink and Global Aviation, the latter operating under the brand LIFT.<\/p>\n\n\n\n These complaints raised concerns that FlySafair\u2019s foreign ownership exceeds the permissible limits and questioned the airline\u2019s adherence to local regulations.<\/p>\n\n\n\n According to FlySafair\u2019s financial records, ASL Aviation Holdings\u2019 majority stake indicates that FlySafair\u2019s 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.<\/p>\n\n\n\n FlySafair has maintained that it is committed to regulatory compliance and transparency, and has been working to interdict the IASC’s ruling. <\/p>\n\n\n\n The group previously noted that the scrutiny pertains only to its international routes, leaving its domestic flights unaffected.<\/p>\n\n\n\n Its domestic services are governed under a different licensing framework, meaning passengers on local flights can continue flying without concern.<\/p>\n\n\n\n