South Africa’s largest airline in deep trouble

South Africa’s largest domestic airline, FlySafair, faces an uncertain future following adverse regulatory rulings.

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

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

FlySafair is 74.86% owned by ASL Aviation Group, an Irish aviation services holding company focused on cargo and passenger airline operations.

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

This shareholding seems to be contravening the South African and international Air Services Licensing Act.

Airlink and Global Aviation Operations, which operates Lift, lodged formal complaints regarding Flysafair’s shareholding, and an inquiry was launched in October 2022.

FlySafair is 74.86% owned by ASL Aviation Group, an Irish aviation services holding company focused on cargo and passenger airline operations.

This shareholding seems to be contravening the South African and international Air Services Licensing Act.

Airlink and Global Aviation Operations, which operates Lift, lodged formal complaints regarding Flysafair’s shareholding, and an inquiry was launched in October 2022.

Towards the end of last year, the International Air Services Council (IASC) ruled that FlySafair’s shareholding structure was not compliant with South African law.

The IASC said FlySafair has contravened and failed to comply with provisions of the law regarding local ownership.

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.