Flysafair Risks Grounding Over Foreign Shareholding Compliance

Low-cost airline FlySafair could find its operations grounded if its parent company Safair, fails to reduce its foreign shareholding within a year.

The Domestic Air Services Council has found that Safair is not fully compliant with the foreign ownership limits outlined in the Air Services Licensing Act.

This relates to the requirement that 75 of voting rights must be held by South African citizens who are residents of the country.

After the councils meeting last month, the airline was also told to submit a Term-Sheet detailing its milestones and compliance plan, with the deadline lapsing tomorrow.

The Councils decision has effectively given an opportunity for Safair to remain in the skies while fixing its compliance matters. In its letter to Safair, the Council stated that should Safair, fail to comply within the deadline of 12 months, it will be required to appear before the Council to justify why its license should not be suspended or revoked, says Transport Department Spokesperson Collen Msibi.