FlySafair not compliant with foreign ownership rules, says licencing council

Budget airline FlySafair faced off with both the Air Service Licensing Council and its own pilot body in the same week.

Then, while the council ruled against the airline about its controversial foreign ownership, trade union Solidarity threatened strike action by the carrier’s pilot body.

In a drawn out hearing and deliberation process, the Air Service Licensing Council ruled late on Friday that the airline’s foreign ownership structure does not comply with current regulations.

As it stands, foreign ownership of a domestically registered airline is limited to 25%. In a submission to the council in May this year, its competitor Lift suggested that FlySafair’s majority ownership lies in Ireland with shareholder ASL Aviation Holdings holding a vast majority of the issued equity in the company.

In an internal WhatsApp message, FlySafair chief executive Elmar Conradie said to staff that the council “has found that we are non-compliant, and they have advised us that they will share further communication around their sanction and their reasoning within 20 working days”.

Conradie added: “This is obviously not the outcome we had hoped for, but it is [a relief] to have some forward traction on this matter after a long wait. We obviously believe that we are, and have always been, compliant with the limitations of foreign involvement, and have taken senior legal advice on the topic at every turn.”

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Prior to the council ruling, the carrier submitted an urgent application in the Pretoria High Court in October asking for a legal interpretation and clarification on the rules relating to airline shareholding and control, arguing that clarification is essential for the entire airline industry as different interpretations of these rules could lead to serious consequences, such as suspensions of operating licences, which would disrupt air travel and harm the economy.

The current case echoes the 2013 Comair challenge to FlySafair’s ownership, during which the judge expressed strong doubts about its compliance with legal requirements. In 2014, FlySafair responded by challenging Comair’s shareholding when the regulator attempted to suspend Comair’s licence, though Comair ultimately succeeded in overturning the suspension in court before going defunct.

FlySafair spokesperson Kirby Gordon said: “We wish to offer our customers assurance that this decision has no immediate impact on our operations as we pursue business as usual.”

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Strike looming for FlySafair?

In another potential setback for FlySafair, strike action could be on the horizon. Trade union Solidarity has notified the airline this week that it is seeking a strike certificate, supported by 93% of its members, due to a dispute over a new rostering system set to start in February.

Solidarity said the crew were unhappy and expressed frustration with FlySafair’s intent to proceed with the changes despite ongoing consultations with labour.

“We are compelled to take action on behalf of our members,” Solidarity wrote in a letter seen by The Citizen, while also expressing willingness to explore alternative solutions for an amicable resolution.

Gordon declined to comment on the matter, saying that FlySafair does not comment on union matters but would issue a statement “in due course if we deem it necessary”.

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