FlySafair will be able to continue with normal operations in South Africa for the time being, following a new ruling by the Air Services Licensing Council (ASCL).
The domestic air carrier has been in hot water over the past few months after it was declared to be in breach of local regulations, threatening to shut down one of the country’s most affordable flight options.
A risk to local flights
In January 2025, the ASCL determined that FlySafair’s ownership structure does not adhere to South African law, which states that domestic airlines have to be at least 75% locally owned.
The ASCL revealed that the Irish ASL Aviation currently holds a 74.86% stake in the air carrier, making it the majority shareholder.
This means that FlySafair’s ownership structure violates South African and international air services licensing regulations, leading to concerns that the airline could be grounded until the matter is resolved.
FlySafair is responsible for roughly 60% of domestic flights, which can go as high as 60 flights every day.
Its shutdown would therefore be a major detriment to the local aviation industry, which is already struggling to meet demand and would likely result in astronomical price hikes for the remaining services.
To avoid this worst-case scenario, the company applied for an exemption in January from Transport Minister Barbara Creecy while its court case is under review, which would allow it to continue operating to avoid further disruptions to the industry.
The company has since issued a statement on Tuesday, 4 February, revealing that while the ASLC has issued sanctions regarding a technical interpretation of national provisions, FlySafair has 12 months to comply.
In other words, the air service is able to continue operating with no immediate threat of a shutdown, reported MoneyWeb.
“In its latest communication, the ASLC has given FlySafair 12 months to align with this interpretation and will require monthly progress reports,” said FlySafair chief marketing officer Kirby Gordon.
“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 airline disputes the claim that it does not comply with local ownership laws, arguing that the ASLA’s interpretation of the regulations has changed.
Within the Air Services Licensing Act, there are Nationality Provisions that dictate the degree to which an airline may or may not be controlled through voting rights by an entity that is not based in South Africa.
“The wording there in the domestic instance actually says that 75% of voting rights need to be held by residents of the Republic, and it does go on to give instances of what this would look like outside of the ownership by natural persons, but the recent interpretation by the Air Services Licensing Council is a far more narrow one,” said Gordon.
“At this stage, they are saying that they do not see fit that a trust or a company as such may actually be an owner of an airline and have resident members controlling the voting rights within those entities, rather they believe that airlines need to actually be owned by natural persons, warm-blooded human beings like you and I, in their personal capacity, which of course calls into question not only FlySafair but a number of other airlines in South Africa who are not owned by individuals.”
FlySafair argues that this narrower interpretation of the law not only threatens its own operations but that of other domestic air carriers, which could throw the local industry into disarray should it be carried out.
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