FlySafair gets 12-month reprieve, may continue flying

Domestic airline FlySafair has assured its passengers that its flights will continue without disruption after a recent ruling by the Air Services Licensing Council (ASLC).

In a statement issued late on Tuesday, the airline noted that although the council has issued sanctions regarding a technical interpretation of nationality provisions, FlySafair has 12 months to comply with the provisions. This means there is no immediate threat to its operations.

FlySafair’s dispute with the council stems from a requirement that 75% of the voting rights of air services licensees (airlines) must be South African residents and that the licensee must be in effective control of the airline.

Global Aviation, trading as Lift Airline, laid a complaint against FlySafair, alleging non-compliance with the relevant provisions.

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In December, the council determined that FlySafair did not meet the 75% requirement.

“In its latest communication, the ASLC has given FlySafair 12 months to align with this interpretation and will require monthly progress reports,” says FlySafair chief marketing officer Kirby Gordon.

He adds that the council has however “not provided specific guidance on what compliance should look like beyond its original ruling”.

The airline notes it is pleased that there is no threat to its operations. “[We] can turn our full attention to our customers [who] can continue booking and flying … as FlySafair remains fully operational while we address this matter.”

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The airline is evaluating its options based on the council’s ruling, it notes. This includes shareholder changes or challenging the ruling through legal channels.

“We will do everything in our power to ensure compliance in these 12 months,” it says.

“For now, however, the issue remains a regulatory discussion around shareholding rather than an operational concern, and FlySafair reassures customers that all flights will proceed as scheduled.”

This article was republished from Moneyweb. Read the original here.