
The Minister of Transport, Barbara Creecy, has designated FlySafair’s request for exemption from complying with some provisions of the Air Service Licensing Act as “premature.”
This comes after FlySafair’s shareholding structure was deemed to be in contravention of the Act by the Air Services Licensing Council (ASLC).
“The Minister sought legal advice from the legal section of the Department, which established that the last meeting between the Council and Safair was as recently as 14 January 2025,” said Department of Transport spokesperson Collen Msibi.
“In the meeting, Safair and the complainant, Global Aviation Operations (Pty) LTD, were given an opportunity to make oral representations for mitigation and aggravation. The Council is still considering all submissions and presentations made, and will make a decision on this matter in due course.”
The Minister has further instructed the Department to seek legal advice from the senior counsel regarding the airline’s application for Ministerial exemptions within the context of the processes that are currently unfolding.
Msibi emphasised that the Department’s statement is not a guarantee that FlySafair’s operating licence will be cancelled.
“The Council has a legal requirement to notify Safair of its final decision. Section 25 of the Act also provides that any person who feels agrieved by the refusal or decision of the Council may appeal the decision to the High Court,” said Msibi.
“This, therefore, means that due processes should be followed and concluded. The Council should eventually pronounce on its final determination. Safair can thereafter exercise its right to appeal if it feels aggrieved by the final decision of the Council.”
Msibi noted that the Department has communicated Creecy’s decision to FlySafair CEO Elmar Conradie.
Cheap flights at risk
The ASLC earlier this week announced that it has found FlySafair’s ownership structure as being in breach of the Air Service Licensing Act.
Domestic airlines must have at least 75% South African ownership, however, the ASLC found that Ireland-based ASL Aviation Group holds 74.86% of FlySafair shares, therefore making it the airline’s majority shareholder.
The nation’s biggest airline is thus facing penalties such as being barred from operating in South Africa until its shareholding structure complies.
FlySafair operates an estimated 160 flights on a daily basis which comprises about 60% of domestic flights.
The fear is therefore that, should the carrier be disqualified from flying, it would overwhelm the existing airlines and leave many travellers without options.
Furthermore, with higher levels of demand and significantly less supply, the removal of FlySafair would likely drive ticket prices to astronomical levels.
FlySafair has also highlighted that its suspension could lead to several job losses in the aviation industry given the number of people involved in its operations, whether directly or indirectly.
Less travelling will also impact the tourism industry which is still recovering from the Covid-19 pandemic, which could have a knock-on effect on the economy given that tourism is one of the country’s biggest revenue generators.
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