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New legal battle to stop BEE laws for international airlines

Sakeliga has launched a court case to reverse Black Economic Empowerment (BEE) requirements for international air services operating in South Africa.

The non-profit company recently announced on X that it would challenge the South African International Air Services Council (IASC) over its imposition of race-restrictive licencing conditions on foreign air services operators.

The IASC is a local statutory body established to regulate cross-border international air services.

According to Sakeliga’s mission statement, the company was founded in 2011 when a group of business leaders decided an organisation was needed to resist harmful state economic intervention.

It argues that the IASC is a chokepoint for international air carriers in South Africa and that its imposition of BEE demands has serious ramifications for the aviation industry.

“The IASC has been demanding B-BBEE credentials and transformation commitments from international airlines seeking to operate routes to and from South Africa,” it said on X.

“This is unlawful, absurd, and threatening to isolate South Africa from travel and trade.”

Sakeliga pointed out that international airlines have been discreetly resisting these demands, but that the IASC’s actions are still harming the industry’s growth in a number of ways.

It highlighted that BEE requirements discourage foreign airlines from expanding their services in South Africa, and that this limits passenger and cargo travel options.

It also argued that this drives up the cost of air travel for individuals and businesses, and that it is reducing South Africa’s connectivity with the rest of the world.

Importantly, Sakeliga noted that foreign air carriers have no obligation to restructure their global operations to meet South Africa’s socio-economic targets.

“Demanding that major international airlines demonstrate BEE credentials or transformationist commitments is not only unlawful but absurd,” it said.

“Foreign carriers operating international routes to and from South Africa have no obligation or ability to restructure their global operations to meet South African racial demographics.”

“By introducing considerations that have nothing to do with operational standards, safety, or service quality, the IASC is undermining commercial freedom and threatening the viability of inbound and outbound international air services.”

The company argued that these controversial requirements are adding to diplomatic tensions at a time when international parties are already becoming increasingly disillusioned with South Africa’s escalating race-restrictive policies.

Taking action

Sakeliga explained that it became aware of the IASC’s intention to make BEE a requirement for international airlines in late 2023.

The group submitted extensive requests for further information to the IASC and the Minister of Transport (who appoints IASC council members) under the Promotion of Access to Information Act.

It finally received the minutes for the council’s meetings in May 2025, where Sakeliga alleges that the IASC has been “obstructing and threatening to deny licences for international air services by arbitrarily demanding B-BBEE credentials and transformation undertakings.”

The company highlighted that, according to the International Air Services Act, the council must focus strictly on operational capacity, safety standards, and accountable local ownership and control requirements.

“It has no power, either in local or international law, or under South Africa’s international aviation agreements, to require BEE or other transformationist commitments.”

Sakeliga’s legal challenge seeks to review and set aside the IASC’s decision to deny or condition licences based on BEE criteria, and to declare the council’s conduct in imposing BEE requirements unlawful, unconstitutional, and beyond its statutory powers. 

“Should the IASC and other respondents, such as the Minister of Transport, choose to oppose Sakeliga’s application, it would demonstrate the government’s escalating commitment to making BEE compulsory for all economic activity,” it said.

This new case comes after Sakeliga was successful in a previous court battle in August, where it challenged the same requirements for local air service providers.

In its case, the court ordered the Air Services Licensing Council to cease applying the Broad-Based Black Economic Empowerment Act and race-based requirements in its licensing decisions.

Sakeliga stated that it now seeks to restore commercial freedom for international airlines in the same way it did for local air carriers.

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