FlySafair has filed an urgent application to interdict a ruling that threatens its international operations after it was found that the airline’s shareholding structure violates foreign ownership regulations.
“In keeping with our commitment of transparency and compliance, we would like to share that we have filed an urgent application for an interdict to protect our international customers from any unnecessary disruption, as we work through this matter, although we remain confident in our longstanding adherence to regulatory requirements,” the airline said in a statement.
“This recent decision pertains solely to FlySafair’s international routes and will not impact any domestic flights, which are governed by a separate licence.”
FlySafair’s foreign destinations include Mauritius, Zambia, Zimbabwe, Mozambique and Namibia.
The International Air Services Council (IASC) recently concluded that FlySafair’s shareholding structure, particularly regarding the involvement of Irish-based ASL Aviation Holdings, is not compliant with the South African regulations surrounding foreign control limitations.
A 2019 deal by ASL to acquire an effective 74.86% ownership stake in Safair, the parent company of low-cost airline FlySafair, is the source of the regulatory issues.
The IASC is a South African institution within the Department of Transport that has the power to grant or revoke permits and licences for air services into and out of the country.
FlySafair said this week that it wanted to assure customers that it was focused on avoiding any disruptions.
“We are engaging with the relevant authorities to avoid any negative impact on customers and have backup plans in place should we need them,” it said.
“Competitors have raised objections to FlySafair’s interdict. While their positions may reflect their business interests, we hope that all parties consider the potential impact on travellers and the broader aviation community. Limiting supply on these routes could drive up fares and disrupt travel plans, particularly as demand rises over the summer holiday period.”
