Business
Transport Minister Declines FlySafair’s Plea Amid Foreign Ownership Dispute

South Africa’s Transport Minister Barbara Creecy has refused to intervene in FlySafair’s request for an exemption from local aviation ownership requirements. The decision leaves the airline at risk of license suspension or cancellation, with potentially severe consequences for South Africa’s aviation sector.
Ownership Breach: The Core Issue
FlySafair, which holds a 60% market share in South Africa’s domestic air travel, has been found in violation of the Air Services Licensing Act.
- An investigation revealed that ASL Aviation Holdings, an Ireland-based company, effectively owns 74.86% of FlySafair through an investment holding structure.
- The Act mandates that aviation license holders in South Africa must have at least 75% local ownership.
Both the Air Services Licensing Council (ASLC) and the International Air Services Council (IASC) have agreed that FlySafair is in breach of these laws.
FlySafair’s Request and Creecy’s Decision
In an attempt to mitigate the looming crisis, FlySafair asked Minister Creecy to exempt it from some provisions of the Air Services Licensing Act.
However, Creecy rejected the request, stating it was “premature” and emphasizing the need for due process. She pointed out that:
- The ASLC has yet to issue sanctions against the airline.
- FlySafair retains the right to appeal any council decisions if necessary.
“This, therefore, means that due processes should be followed and concluded,” said Creecy, who sought legal advice before making her decision.
What’s at Stake for FlySafair?
The airline is now waiting for the ASLC to announce sanctions, which could include:
- Suspension or cancellation of its aviation license, effectively grounding its operations.
- Fines or penalties for non-compliance.
- A grace period to restructure its shareholding by selling shares to South African entities.
FlySafair Chief Marketing Officer Kirby Gordon acknowledged Creecy’s decision, stating, “We await further advice from the relevant parties.”
Legal Standoff and Next Steps
FlySafair secured a court interdict against the IASC, preventing the council from imposing sanctions without engaging with the airline. Meetings between FlySafair and the IASC in the coming days are expected to determine the airline’s fate.
Impact on South Africa’s Aviation Industry
The potential suspension of FlySafair’s license could have catastrophic consequences for South Africa’s aviation sector.
- As a dominant player with 60% market share, FlySafair is integral to the country’s domestic travel network.
- Any disruptions could strain the already fragile aviation industry, affecting passengers, businesses, and the economy.
The dispute between FlySafair and South Africa’s aviation authorities underscores the challenges of navigating local ownership laws. While Minister Creecy’s decision to let due process take its course is legally sound, it leaves the airline in a precarious position.
As FlySafair awaits sanctions, the coming days will be pivotal in determining its future and its role in South Africa’s aviation industry.
Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram
For more News in Johannesburg, visit joburgetc.com