Harith’s Big Move: FlySafair Set For Sale As South Africa’s Top Airline Enters A New Era

South Africa’s Biggest Airline Is About To Change Hands

South Africa’s aviation landscape is headed for one of its most significant shake ups in years, with private equity firm Harith General Partners preparing to acquire low cost carrier FlySafair. The deal, now at an advanced stage, marks a major expansion of Harith’s transport investment footprint across the continent.

For local travellers who rely on FlySafair for its budget friendly fares and strong on time performance, the airline’s daily operations are expected to continue as normal. But behind the scenes, this sale could reshape both the carrier’s ownership structure and the future of South Africa’s domestic aviation market.

Why FlySafair Is Being Sold

At the heart of the transaction is a long running regulatory hurdle. South Africa’s Domestic Air Services Council ruled in 2024 that FlySafair was not compliant with local ownership laws because 75 percent of its voting rights were held by companies and trusts rather than individual South Africans. The complaint first came from rival airline Lift.

The ruling placed pressure on FlySafair to change its structure or risk its licence. Harith General Partners stepped in with a proposal that could help resolve the issue, with the transaction expected to be finalised before the end of 2026.

Harith Chairman Tshepo Mahloele says the acquisition will be funded through a mix of equity and debt, forming about 15 percent of the company’s wider investment portfolio.

A New Chapter For A Dominant Airline

FlySafair currently controls more than 60 percent of domestic seat capacity, cementing its place as South Africa’s biggest airline. The carrier operates 10 domestic routes and 5 regional routes, with its regional expansion gaining momentum after the Covid travel slump.

According to Chief Marketing Officer Kirby Gordon, Harith plans to retain FlySafair’s current leadership and overall strategy. For passengers, that means the airline’s familiar focus on affordability and reliability will remain central.

While the deal may help alleviate the ownership compliance issues, Gordon emphasised that the airline will still need to complete the required regulatory processes.

The Deals That Never Took Off

Harith’s interest in aviation stretches back several years. The company previously negotiated a stake in South African Airways, but the government terminated talks due to disagreements over pricing and control. Harith also explored acquiring part of Comair before its collapse in 2022.

In retrospect, Mahloele says FlySafair presented the strongest business case due to its management stability and commanding market share.

Harith already has a presence in the aviation sector through its ownership stake in Lanseria International Airport, strengthening its position in South Africa’s broader transport infrastructure.

A History Of Ownership Challenges

FlySafair’s ownership structure has been a long running challenge. In 2017, the airline signed a merger agreement with SA Airlink, but competition authorities blocked the deal the following year. Since then, the ownership landscape has evolved, with Qatar Airways acquiring 25 percent of Airlink in 2024.

With Harith now stepping in, FlySafair is closer than ever to resolving an issue that has followed the airline for nearly a decade.

What This Means For South African Travellers

If approved, the deal is expected to provide stability for a domestic aviation market that has witnessed several airline failures over the past decade. For Johannesburg travellers especially, a strengthened FlySafair could mean more reliable capacity and potentially expanded regional access.

Harith’s investment may also accelerate the carrier’s cross border ambitions, opening up more affordable options across Southern Africa at a time when travel costs are under pressure.

{Source:Business Tech}

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