FlySafair is 74.86% owned by ASL Aviation Group, an Irish aviation services holding company focused on cargo and passenger airline operations. Picture: Henk Kruger/Independent Newspapers
FlySafair has expressed relief as the Domestic Air Services Licensing Council (DASLC) confirmed that the airline can continue its operations without disruption.
This comes as FlySafair navigates a 12-month period to rectify its ownership shareholding compliance, a requirement central to the nation’s Air Services Licensing Act.
In a letter to the airline on Tuesday, the DASLC informed FlySafair it would have to work on the compliance even though there were no specifics of the details of filing the compliance and that the airline would have to make monthly representations before the Council.
“At this stage, we are pleased that there is no threat to operations and that we can turn our full attention to our customers,” said Kirby Gordon, chief marketing officer at FlySafair.
“For now, however, the issue remains a regulatory discussion around shareholding rather than an operational concern, and FlySafair reassures customers that all flights will proceed as scheduled.”
The ASLC’s decision stems from a complaint lodged by Lift Airlines concerning FlySafair’s compliance with the nationality provisions of the Air Services Licensing Act.
In December, the Council determined that FlySafair did not meet the requirement that 75% of an airline’s voting rights be held by natural persons who are citizens and residents of South Africa.
“While the Council has issued sanctions regarding a technical interpretation of nationality provisions, they have given the airline 12 months to comply meaning no immediate threat to operations. However, the council has not provided specific guidance on what compliance should look like beyond its original ruling,” Gordon said.
“Customers can continue booking and flying with confidence, knowing that FlySafair remains fully operational while we address this matter.”
FlySafair is currently evaluating all options based on the ruling, which could include shareholder changes or challenging the ruling through legal channels.
“We will do everything in our power to ensure compliance in these 12 months.”
The complaint against FlySafair was lodged by Airlink and Global Aviation Operations, which operates Lift, 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.
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.
Transport Minister Barbara Creecy also dismissed a Ministerial Exemption application by the airline after she had instructed her department to seek legal advice from its senior counsel on the airline’s application.
“It must be noted that it is not a foregone conclusion that the Air Services Licensing Council will simply just cancel FlySafair’s licence. The council has a legal requirement to notify the company of its final decision,” Creecy said.
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