South African low-cost airline FlySafair could be stripped of some of its most lucrative routes after regulators found that the carrier had violated rules pertaining to foreign ownership thresholds. Authorities in the country insist that 75% of voting rights in any air services licensees (airlines) are owned by South African residents and that the licensee must, in effect, be in control of the airline, its finances, and its operations.

The action began following a complaint by the owners of a fellow South African airline, Lift Airline, that cited anti-competitive practices and alleged non-compliance with the relevant provisions.

As an initial response to the investigation being carried out by the country’s Air Services Domestic Council and International Air Services Licensing Council, it is reported that FlySafair has appealed for an exemption to South African Minister for Transport Barbara Creecy as it contests the guilty verdicts handed down by the respective bodies. The breaches relate to the contravening of the foreign ownership threshold both in domestic and international markets.  

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