The South African aviation industry is bracing for potential turbulence after the Air Services Licensing Council (ASLC) issued a ruling that could force the majority of the country’s airlines into non-compliance. The council’s interpretation of the Air Services Licensing Act has sparked concerns of economic disruption, job losses and reduced flight availability.
The ruling stems from an ongoing complaint against FlySafair, which the council has deemed non-complaint with nationality provisions of the Air Services Licensing Act after a complaint lodged by competitor Lift.
At the heart of the dispute is the ASLC’s interpretation of the act, which requires 75% of an airline’s voting rights to be held by “Residents of the Republic”. The council has concluded that this excludes ownership via trusts or companies — structures typically used in the airline industry due to their practicality.
Industry-wide impact
If enforced, the ruling could have widespread consequences, with major airlines such as Airlink and SAA also potentially unable to continue operating under their current ownership structures. According to FlySafair’s chief marketing officer Kirby Gordon, the ASLC’s interpretation of the Act is “drastic and brash”, threatening to “cripple the aviation and tourism sectors”.
Gordon criticised the ruling, noting its disproportionate impact on the broader industry. “This decision harms everyone except Lift Airlines, which appears to be uniquely positioned to benefit from this upheaval. There’s no reason the rest of the economy, or flying public, should suffer as a result,” he said.
Legal battle unfolds
FlySafair has sought clarity on the matter by filing a declaratory order with the courts. This specific legislation has found airlines inside the courtroom three times in the past decade and the airline feels that the courts should offer more guidance on what the law means and how it should be applied. While supported by the transport minister, this application for a declarator has been opposed by the ASLC, the International Air Services Council and other airlines.
Meanwhile FlySafair asserts that the ASLC's current stance contradicts established legal precedent and undermines the practical realities of airline ownership.
Ripple effects
According to FlySafair, industry insiders believe the ruling could disrupt flight schedules, increase ticket prices and undermine confidence in SA’s aviation sector. There are also fears of long-term damage to tourism and the broader economy, with job losses looming as a likely consequence.
“This interpretation is impractical and damaging,” said Gordon. “It does nothing to support growth or sustainability in the aviation sector. We remain hopeful that the minister of transport will intervene to steer this process towards a more reasonable outcome.”
Call for accountability
FlySafair and other affected airlines are urging the government to adopt a balanced approach, ensuring regulatory compliance without endangering an industry that is vital to SA’s connectivity and economy.
As the industry waits for resolution, the stakes remain high, with the outcome determining whether the skies over SA stay open and accessible.
This article was written and sponsored by FlySafair.