FlySafair sheds light on non-compliance issue

FlySafair comments on dispute

After the recent controversy surrounding its foreign ownership structure and the South African International Air Services Council (IASC), FlySafair has come forward with an explaination.

According to Travel News, Kirby Gordon, FlySafair’s Chief Marketing Officer, has revealed that the International Air Services Council’s non-compliance issue regarding its ownership structure only applies to the airline’s international licence.

“We hold an international and a domestic licence (amongst others) and so, if any, this could only impact our international departures,” Gordon said, as per Travel News.

“With the advice and guidance of our legal counsel, FlySafair has been of the understanding that it is fully compliant with all legislative requirements regarding its shareholding structure, and we intend to remain so. As such, we shall continue to engage in the processes afforded to us in law to find a resolution that satisfies all parties.” Gordon added.

The non-compliancy drama

Earlier this month, the IASC revealed that FlySafair’s shareholding structure contravenes South African law, which places a limit on foreign ownership of domestic airlines at 25%.

According to these findings, FlySafair is regarded as being in violation of this law, as the airline is primarily controlled by Ireland-based ASL Aviation Holdings, which directly holds a 25% stake and indirectly owns 49,86% (via the Safair Investment Trust). This then brings ASL’s total ownership to 74,86%, largely exceeding the legal foreign ownership limit.

The council also plans to announce sanctions against the airline soon. This could reportedly range from FlySafair’s licence being suspended or revoked, to financial penalties if the airline does not bring its shareholding into compliance within a time limit.

Gordon noted that if suspension is the case, it would be an extreme outcome for them.

“We are working closely with the authorities and we are prepared to respond effectively to minimise any disruption and safeguard the travel experience of our valued customers.” Gordon said.