FlySafair, one of South Africa’s largest airlines, is in trouble over an alleged breach of the country’s foreign ownership rules.
In response to a complaint filed in 2022 by competitor airlines Airlink and Lift, South Africa’s International Air Services Council (IASC) has determined that FlySafair is majority-owned by Ireland-based aviation and logistics group ASL Holdings.
According to the findings of these investigations, the Irish firm controls 74.86% of FlySafair’s capital. This is a violation of South Africa’s airline ownership laws, which only allow for 25% foreign ownership for airlines domiciled in the country.
South African regulators will now have to determine which punitive measures they will take against FlySafair. These range from a fine to severe operational restrictions, even affecting the airline’s current license.
According to sources at FlySafair, quoted by South African media, the company was collaborating with the enquiry to make sure it complied with the country’s regulations.
The issue has coincided with unrelated labor trouble brewing at FlySafair. The airline faces potential strikes after members at one of the airline’s trade unions voted overwhelmingly against a new rostering system FlySafair wants to introduce in 2025.
While it may still be possible for the union and the airline to reach an agreement on the rostering matter, if the strike finally goes ahead, it will represent an additional element of disruption to the carrier’s operations over the coming months.