Decision to sell South Africa’s biggest airline in the crosshairs

Since the announcement that South Africa’s biggest airline, FlySafair, would be sold, the airline has assured its customers, employees and partners that it is business as usual, despite pushback.

The airline announced that a sale agreement has been reached with private equity firm Harith General Partners, and that it would go ahead, subject to the required regulatory approvals.

Trade union, the South African Cabin Crew Association (SACCA), however, expressed its disappointment that FlySafair did not involve it in the sale negotiations.

The union’s president, Christopher Shabangu, spoke to 702 about the acquisition and how it would affect a significant number of employees.

He explained that the union were not consulted during negotiations between FlySafair and Harith, and that it was not even informed of the agreement to sell the airline.

Shabangu explained that SACCA was aware that the airline was for sale, but that it did not know an agreement had been reached.

“We were shocked when we heard the news, so we’re quite disappointed that they decided not to involve stakeholders like us,” he said.

“If they are excluding the union in this case, they are excluding the workers.”

Shabangu said it’s hard to welcome a decision if there is no clarity on how it will affect the employees of FlySafair.

He said it would have been appropriate for the new shareholders to approach and include the union in their discussions, allowing SACCA to better understand the situation.

“We can’t work like this as a union; we have to have some assurances.”

SACCA is taking steps to approach regulators for clarity, particularly the Competition Commission, to involve the union.

“We are not interested in trying to stop the deal in any way, but if it means we object to the sale for clarity from the buyer, we will do so,” he said.

Business as usual

Following negotiations, FlySafair announced that the airline will continue operate under its existing brand, leadership and strategy.

The airline said this would allow it to offer the same affordable fares, reliable operations and strong on-time performance that customers have come to expect from FlySafair.

“The proposed transaction reflects confidence in a business built on operational discipline, a committed workforce and a clear strategic focus, positioning FlySafair for long-term sustainability,” the airline said.

FlySafair confirmed that a regulatory process relating to its structure remains ongoing, but that the proposed transaction was not initiated in response to the Air Services Licensing Council’s findings.

It added that the findings are subject to an ongoing legal review.

“Transactions of this scale and complexity are typically developed over an extended period and have been under discussion for some time,” the airline declared.

The sale, which would result in the airline being owned by South African investors, will not automatically resolve the matters being considered by the licensing authorities.

They will instead assess the proposed structure in accordance with their statutory mandates.

“The transacting parties respect the independence of those institutions and will continue to engage fully and transparently as required,” said FlySafair.

Harith’s proposed investment is said to be aligned with FlySafair’s existing trajectory and supports the airline’s focus on excellence and sustainable growth.

The equity group will provide long‑term capital, supporting FlySafair’s existing strategy to enhance affordability, reliability and connectivity.

Several considerations still stand between the agreement and its approval, including usual regulatory approval processes and reviews by the Competition Commission and other aviation authorities.

FlySafair confirmed that timelines for the conclusion of the transaction are entirely dependent on the approval processes that follow.