Navigating the FlySafair licensing controversy

What's happening? 

FlySafair is currently facing challenges with two separate licensing councils regarding its ownership structure: 

1. International Licence: 

• On October 31, 2024, the International Air Services Licensing Council (IASC) found FlySafair in non-compliance with the foreign ownership rules outlined in the International Air Services Licensing Act. This only affects international routes and has no impact on domestic services. 

• Why? The IASC claims that although FlySafair is managed in South Africa, its ownership structure includes 74.86% indirect control by ASL Aviation, an Irish company. This violates the law’s requirement that the airline must be at least 75% owned and controlled by South African residents. 

• Current Status: FlySafair obtained a court interdict to prevent sanctions while this matter is being resolved. Further updates from the IASC are still awaited. 

2. Domestic Licence: 

• In December 2024, the Domestic Air Services Licensing Council (ASLC) stated that FlySafair’s domestic operations were non-compliant with the Air Services Licensing Act (1990). 

• On 14 January 2025, FlySafair was invited to make oral representations before the council in a meeting to address mitigation and aggravation. 

• Why? The ASLC claims only individuals (“natural persons”) who are South African residents can hold airline voting rights. FlySafair’s ownership includes legal entities like trusts and companies, which, according to the council, do not qualify as “natural persons.” 

• Current Status: The ASLC has not yet indicated any sanctions, but FlySafair is engaging with the council and the courts to resolve this matter. FlySafair has also written to Transport Minister Barbara Creecy to request exemption while court proceedings are underway. 

On 15 January 2025, Transport Minister Barbara Creecy responded to FlySafair’s request for a ministerial exemption from ownership provisions in the licensing laws, declaring the application “premature.” She explained that the Air Services Licensing Council is still considering mitigation and aggravation submissions and has not yet reached a final determination. 

Furthermore, Minister Creecy reassured stakeholders that due legal processes must be followed. If FlySafair disagrees with the council’s final decision, it can appeal the ruling in the High Court under Section 25 of the Air Services Licensing Act.