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Travel Radar - Aviation News > News > Aviation > FlySafair faces turbulences over foreign ownership charges
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FlySafair faces turbulences over foreign ownership charges

Elpida Krili
Last updated: 5 December 2024 23:12
By Elpida Krili
3 Min Read
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A long road of investigations, airlines, South Africa's, judicial proceedings and domestic concerns, FlySafair
FlySafair B737-4Q8 ZS-JRI © Bob Adams
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FlySafair, one of South Africa’s leading low-cost airlines, is at the center of legal and regulatory turbulence over claims of violating foreign ownership rules. The International Air Services Licensing Council (IASLC) has postponed its decision on sanctions against the airline, citing judicial proceedings and domestic concerns. The expected announcement on November 29 has been postponed, leaving the industry anticipating the future of the airline’s operations in the face of a long road of investigations.

A long road of investigations, airlines, South Africa's, judicial proceedings and domestic concerns, FlySafair
© Bob Adams

The controversy revolves around the airline’s ownership structure. According to the IALSC, Irish company ASL Aviation Group holds a 74,86% stake in FlySafair. Particularly, this act breaches the International Air Services Act. This law requires substantial local ownership and control over international operations. FlySafair has strongly opposed this finding, filling an urgent court interdict to challenge the council’s decision. The airline and the council will likely clarify their discussions further after December 6.

A long road of investigations, airlines, South Africa's, judicial proceedings and domestic concerns, FlySafair
© Bob Adams

FlySafair: A long road of investigations

The inquiry into FlySafair compliance began in October 2022 following complaints from competitive carriers including Airlink and Global Aviation Operations. The accusations have sparked a broader debate on adherence to South Africa’s aviation ownership regulations. These allegations aim to ensure that domestic airlines remain under local control. The case has drawn significant attention, as it could set a precedent for interpreting and enforcing foreign ownership limits in the industry. While FlySafair’s legal action temporarily suspends any regulatory penalties, it prolongs uncertainty for the airline and its stakeholders. 

A long road of investigations, airlines, South Africa's, judicial proceedings and domestic concerns, FlySafair
© Bob Adams

Judicial proceedings and domestic concerns

The IASLC case is only part of FlySafair’s regulatory challenges. The Air Services Licensing Council (ASLC) is investigating a relevant complaint from Global Aviation. The domestic council’s mandate ensures that local airlines maintain at least 75% South African ownership. While the domestic inquiry is in its early stages and does not overlap with the IASLC proceedings, It highlights the increased investigation on FlySafair.

Could this case redefine the implementation of local ownership rules in the aviation industry? Share your thoughts in the comments below.

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Elpida Krili
ByElpida Krili
News Editor - Originally from Greece, Elpida is an English language literature graduate, currently pursuing her Master's degree in Linguistics. Her studies have helped her understand the complexities of language and the importance in conveying the desirable message to readers when writing content. Alongside this, Elpida loves travelling so looks forward to bringing her passion and interest to the readers of Travel Radar!
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