Competition Tribunal approves the sale of South Africa’s biggest airline

The Competition Tribunal has approved Harith Aviation’s acquisition of a 100% stake in South Africa’s biggest domestic airline, FlySafair.

Following the decision, the parties are finalising the remaining regulatory approvals and conditions required to implement the transaction, which is expected to conclude before the end of 2026.

The airline will continue to operate uninterrupted under its existing management team and retain its low-cost operating model and customer offering.

Sipho Makhubela, CEO of Harith General Partners, said the transaction represents far more than an investment in an airline.

“It is a demonstration of long-term South African capital backing a successful South African business. FlySafair has built an exceptional airline with a trusted brand, strong management team and market-leading customer proposition,” he said.

“Our role is to support that success with patient capital while enabling the next phase of growth.”

The Tribunal’s decision marks an important milestone for FlySafair, since the process ran alongside the airline’s continued operations.

Elmar Conradie, Chief Executive Officer of FlySafair, said the domestic carrier is pleased with the Competition Tribunal’s decision.

“It is a significant milestone for the transaction and reflects confidence in the future of the airline,” the CEO added.

“We are excited about the road ahead with our incoming shareholder, and about the opportunities to strengthen our foundations and to grow the South African passenger aviation market.”

According to Conradie, it has been business as usual for FlySafair and its customers, and it will continue as the remaining conditions are met, adding that the airline looks forward to the new chapter.

“Harith Aviation Consortium’s investment in FlySafair recognises aviation as an important driver of connectivity and economic activity,” added Makhubela.

“Reliable and affordable air travel expands access to opportunity, supports tourism and trade and contributes to broader economic growth.”

Domestic rival tried to stop the sale

After the Competition Commission approved the sale of FlySafair to Harith Aviation, privately owned South African airline CemAir called on the Competition Tribunal to prohibit it.

CemAir representative Advocate Dwight Snyman raised concerns with the tribunal, including worries over potential overlapping ownership interests arising from the sale.

He argued that Harith currently holds a 37.5% ownership stake in the Lanseria International Airport, with the Government Employees Pension Fund (GEPF), represented by the state-owned Public Investment Corporation (PIC), controlling the rest.

Snyman warned that the ownership overlap could lead to inadvertent sensitive commercial information exchange, especially since the PIC holds a 30% shareholding in Harith General Partners.

According to the advocate, the ownership overlap could also give FlySafair an anti-competitive advantage through common interests at Lanseria International Airport, where it is based.

Other concerns included that the merger may soften competition between Lanseria and airports owned by the Airports Company South Africa (ACSA), in which the PIC also holds a 20% stake.

In response to CemAir’s concerns, the Competition Commission explained that under the terms already agreed to, the PIC would hold only minimal indirect interest in FlySafair.

Other terms agreed to under the transaction include regulated information exchange and ensuring goods and services provided to other airlines at Lanseria are not offered on unfair terms.

Following CemAir’s initial appeal, the Competition Tribunal reserved its approval following the hearings, but has now communicated its decision to Harith Aviation, approving the transaction.