In line with a recent ruling by SA’s International Air Services Council (IASC), the country’s Air Services Licensing Council (ASLC) has also ruled that Flysafair does not comply with the Air Services Licensing Act.
The ASLC is SA’s domestic air services regulator.
The continuing inquiry by the IASC and ASLC into Flysafair's shareholding structure dates back to October 2022 and includes later formal complaints by Airlink and Global Aviation (the latter operates the LIFT airline) in February this year.
Neither two council has determined any form of sanction or mitigation against Flysafair. After the earlier ruling by the IASC, Flysafair filed an urgent application for an interdict against that council’s noncompliance ruling. That matter is still sub judice.
According to a written communication by the ASLC, dated December 19 and seen by Business Day, it held a hearing on December 11. The complaint (as was the case with the complaint to the IASC) relates mainly to the act stipulating that, if a licensee is not a natural person, it has to at all times be incorporated in SA and that at least 75% of its voting rights must be held by SA residents.
The council has invited the parties to a follow-up meeting in January “for what its letter refers to as aggravation and mitigation”.
The annual financial statements of the Ireland-based company ASL Aviation Holdings indicate that Flysafair is controlled by and a subsidiary of ASL, and that ASL now owns 74.86% of the airline.
On Friday, Flysafair confirmed to Business Day that ASLC informed it of its noncompliance ruling.
“As a proudly SA company, FlySafair has always maintained the firm belief that our structure and operations align with the required legal provisions. While these recent findings challenge our understanding, we remain steadfast in our commitment to compliance,” Flysafair said in a statement.
“We take this matter seriously and welcome the opportunity to engage constructively with the council to address concerns and collaboratively explore viable solutions. Flysafair’s primary focus is, and always has been, to operate within the bounds of the law while delivering exceptional service to our valued customers. In this context, we are prepared to consider all reasonable options to ensure alignment with the act’s requirements.”
Flysafair also addressed concern that this situation might raise among its customers, stakeholders, and employees.
“We will continue to operate as normal while we resolve this matter and will seek legal recourse, if necessary, to protect our ability to serve the SA public and economy,” said the airline.
“We are confident that, through dialogue and co-operation, this issue can be resolved in a manner that ensures compliance while safeguarding the interests of all parties involved. FlySafair remains committed to upholding the highest standards of corporate governance and operational excellence.”
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