Flysafair Drops Compliance Bombshell

A recent decision by the Air Services Licensing Council ASLC finding FlySafair non-compliant with domestic licensing rules, could jeopardise the operations of other major airlines in South Africa and potentially bring significant disruption for air travel, says FlySafair in a media release issued on January 14.

The Council has issued a ruling that calls into question the compliance of numerous airlines with the Air Services Licensing Act, specifically regarding ownership requirements, says the statement.

The crux of the matter lies in the interpretation of the Act's provision mandating that 75 of an airline's voting rights must be held by Residents of the Republic . The ASLC's stance is that this means that airlines must have individual natural person shareholders, effectively excluding trusts and companies a common ownership structure in the industry. Ignoring the fact that most individuals do not have the capital or resources to own an airline, this interpretation potentially renders the majority of South African airlines non-compliant, including major players like Airlink and SAA.

FlySafair is a central figure in this dispute and is adamant that the ASLC's interpretation is not only overly restrictive but also contradicts established legal precedent. FlySafair has therefore taken proactive steps to address the ambiguity in the Act by seeking a declaratory order from the courts. This legal action aims to provide clarity and guidance for the entire industry, albeit that the ASLC has opposed this process.

FlySafair remains committed to resolving this issue constructively and advocating for a sensible interpretation of the Act that supports the growth and sustainability of the South African aviation industry. The airline is hopeful that the Minister of Transport will take decisive action to steer the process toward a positive outcome.