Carrier Faces Foreign Ownership Headwinds

South Africa's International Air Services Council IASC has ruled that FlySafair does not comply with local regulations regarding foreign ownership. This could potentially jeopardise its operating licence.

The enquiry by the IASC into FlySafairs shareholding structure dates from October 2022 and emanates from formal complaints by Airlink and Global Aviation which operates LIFT received by the IASC in February of that year, Business Day reports.

The IASC has now determined that FlySafairs shareholding structure contravenes South African law, which caps foreign ownership of domestic airlines at 25.

According to the IASC, FlySafair is primarily controlled by Ireland-based ASL Aviation Holdings, which directly holds a 25 stake and indirectly owns 49.86 via the Safair Investment Trust. This arrangement effectively brings ASLs total ownership to 74.86, significantly exceeding the legal foreign ownership limit.

FlySafair has allegedly beenaccused of failing to amend its air service licence to reflect changes in its ownership structure since March 2019.