DailySun
The Air Services Licensing Council of South Africa has ruled that FlySafair is not complying with the Air Services Licensing Act. This decision could have significant repercussions for the aviation sector.
This ruling stems from a complaint filed by Lift, asserting that FlySafair does not meet the 75% South African residency requirement for voting rights as mandated by the act.
This verdict aligns with an earlier decision by the International Air Services Licensing Council from October 2024, which suggested swift penalties without the usual justifications mandated by law. FlySafair successfully contested that decision through a court interdict.
The heart of the issue lies in the interpretation of residency requirements, which the council argues should only pertain to “natural persons,” thus excluding trusts and corporations. FlySafair, largely owned by South African trusts and companies, claims that this interpretation misinterprets both the law and established legal precedents.
A potential threat to the sector
Kirby Gordon, FlySafair’s chief marketing officer, warns that the council’s interpretation endangers not only FlySafair but also many South African airlines, including significant companies like Airlink and South African Airways (SAA).
“Should this interpretation be upheld, the majority of the domestic aviation sector, responsible for 87% of seat capacity, would be deemed non-compliant,” he cautions.
Read: FlySafair states its ‘non-compliance’ affects nearly all South African airlines
Gordon also highlights that this interpretation contradicts the 2014 Comair court ruling, which clarified that councils should not “look through” ownership layers.
Wider context
The nationality provisions have long been a topic of contention in South African aviation. FlySafair is currently seeking judicial clarity through a declaratory order. This application, which has the support of Minister of Transport Barbara Creecy, is opposed by Lift, Airlink, and the councils.
The minister has already expressed support for a modern interpretation of the law through a proposed new Air Services Bill, which aligns with FlySafair’s stance.
“This reasoning raises substantial concerns,” notes Gordon. “If councils continue to make decisions without fully grasping the law, the consequences will be dire.”
Industry ramifications
FlySafair argues that the councils’ position merely serves Lift’s interests and jeopardizes the broader aviation industry, the economy, and consumers.
It observes that similar regulations are rare globally, with other regions adopting more inclusive approaches to ownership structures.
Looking ahead
FlySafair remains committed to adhering to regulations and fostering constructive engagement.
“We hope that the courts and the Minister of Transport will guide this process back to a logical path,” adds Gordon.
As legal processes unfold, the South African aviation industry is bracing for clarity on a ruling that could drastically change the regulatory landscape and influence the future of domestic air travel.
Provided by FlySafair.
