16.01.2025

FlySafair case: South Africa’s air council risks grounding the country’s tourism economy

The Air Services Licensing Council of South Africa is facing backlash for its controversial decision regarding FlySafair’s compliance with nationality provisions, a move that threatens to destabilise the country’s aviation sector and its fragile tourism economy.

The dispute stems from an interpretation of the Air Services Licensing Act that requires 75% of voting rights in domestic airlines to be held by South African residents.

The Council has ruled that only “natural persons” qualify as residents, rejecting FlySafair’s ownership structure, which places voting rights with South African Residents who are trustees to South African trusts and companies.

Critics argue that this rigid interpretation misrepresents the law and ignores established legal precedent, such as the 2014 Comair ruling, which emphasised focusing on controlling entities rather than digging into ownership layers.

FlySafair, South Africa’s most punctual airline and a significant player in the domestic travel market, is not the only airline at risk.

This decision could jeopardise as much as 87% of South Africa’s domestic flight capacity, with carriers like Airlink and even the state-owned South African Airways potentially non-compliant.

Ironically, Lift Airlines, the complainant in this case, remains the only airline likely unaffected by the Council’s decision.

Kirby Gordon, Chief Marketing Officer at FlySafair, warns of the economic fallout: “If the Council proceeds on this flawed basis, the knock-on effects will be enormous for the industry, passengers, and the economy.”

FlySafair has sought legal clarity through application for declaratory order, supported by the Minister of Transport.

However, opposition from competitors, including Airlink, Lift Airlines, and resistance from the Council itself have slowed progress.

In the meantime, South Africa’s aviation sector remains on shaky ground, with the Council’s actions putting its future at risk.

The stakes are high: grounding FlySafair or disrupting operations could severely damage South Africa’s tourism sector, already a critical pillar of the economy.

As tensions rise, many are calling for the Minister of Transport to intervene and ensure that rational decision-making prevails.

The Council’s actions not only target FlySafair, but also risk undermining the broader aviation industry, leaving millions of travellers and the economy hanging in the balance.

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