FlySafair operations unaffected despite Licensing Council ruling

FlySafair has assured its passengers and stakeholders that its operations will remain unaffected following recent sanctions issued by the Air Services Licensing Council (ASLC). While the council has raised concerns regarding a technical interpretation of nationality provisions in the Air Services Licensing Act, the airline has been granted a 12-month period to comply, ensuring that there is no immediate impact on its flights or services.

The ASLC’s ruling follows a complaint lodged by Lift Airlines, questioning FlySafair’s compliance with the Act’s requirement that 75% of an airline’s voting rights be held by South African residents. FlySafair has 50% of its voting rights held by a South African-controlled trust, but the ASLC has now adopted a more restrictive interpretation, asserting that these voting rights must be held by natural persons rather than corporate entities or trusts.

This marks the third time that SA’s nationality provisions have been legally challenged, with the most notable precedent set in 2017 when Comair successfully defended its compliance in court. At the time, the judiciary ruled that Comair, as a publicly traded company, satisfied the licensing requirements, even though its ownership was not exclusively in the hands of natural persons.

This ruling raises questions about consistency in regulatory enforcement. “The ASLC’s latest interpretation contradicts legal precedent, which found that compliance could be achieved through South African-registered corporate entities,” says Kirby Gordon, chief marketing officer at FlySafair. 

FlySafair is evaluating its next steps. However, according to the low-cost carrier, industry insiders suggest that the ASLC’s rigid interpretation is unlikely to stand unchallenged. Legal action appears to be a probable route, not just for FlySafair but possibly also for other major airlines that could be affected if this interpretation becomes precedent. 

“At this stage, we are pleased there is no threat to our ability to operate and that we can keep our focus on our customers,” says Gordon. “Customers can continue booking and flying with confidence, knowing that FlySafair remains fully operational while we address this matter.”

While FlySafair is at the center of this ruling, it is no secret that the airline has been the target of increasing scrutiny from competitors, who have been vocal about FlySafair in the media, and have raised concerns over regulatory matters. This suggests these complaints may not purely be about compliance but also about market positioning.

Despite the regulatory uncertainty, FlySafair remains steadfast in its commitment to passengers. “For now, this remains a regulatory discussion rather than an operational concern,” Gordon reiterated. “Our focus is on ensuring continuity and providing the reliable, affordable service that South Africans have come to expect from FlySafair.”

As the 12-month compliance period unfolds, the industry will be watching closely to see whether legal challenges emerge, whether the ASLC provides clearer guidance, and whether other airlines find themselves in similar regulatory crosshairs.

For now, passengers can rest assured: FlySafair flights remain on schedule, and the airline remains firmly in the skies.

This article was written and sponsored by FlySafair.