FlySafair could be barred from operating international routes following the International Air Services Council (IASC) ruling that the airline’s shareholder structure is non-compliant with South African law.
Local regulations dictate that registered domestic airlines may have no more than 25% foreign shareholding.
However, the IASC contends that approximately 74.86% of FlySafair shares are owned by ASL Aviation Holding, an Ireland-based company focused on cargo and passenger airline operations that serves over 150 airports worldwide.
In a leaked letter to FlySafair on 31 October, the IASC allegedly said: “Safair’s company structure comprises 49.86% shareholding by the Safair Investment Trust, which is one of three shareholders of Safair, which is eventually 100% owned by ASL Aviation Holdings.”
“This is additional to the 25% shareholding that is also eventually owned by ASL Aviation Holdings, making the total shareholding of Safair by ASL to 74.86%; ASL effectively holds 74.86% in Safair through Safair Investment Holdings.”
The IASC has yet to announce any sanctions against the airline, though it said that it would do so within 20 working days of delivering the letter.
The sanctions could include the suspension of FlySafair’s licence or monetary fines should the airline fail to rectify its shareholding structure.
Silver lining to a dark cloud
Following widespread media coverage, FlySafair has announced that the IASC’s ruling will only affect its international services but have no bearing on its domestic flights, which are governed by a different licence and will remain unaffected.
The airline said it has filed an urgent interdict application to protect international customers from any potential service disruptions while it works through the matter with the IASC.
Furthermore, it said it’s engaging with relevant authorities on ways to resolve the impasse, and it has prepared contingency plans should the outcome be unfavourable.
FlySafair said it remains confident that it has adhered to regulatory standards over the years and is committed to ensuring uninterrupted service for its international customers
Join the discussion