Will Safair be grounded?

NONCOMPLIANCE: MAY GET ORDER TO COMPLY, GET TEMPORARY OR PERMANENT LICENCE SUSPENSION

- Hein Kaiser

• Violates law that 75% of voting rights must be held by local residents.

Budget airline FlySafair's (Safair) future hangs by a thread as the carrier awaits sanction from the Domestic Air Services Licensing Council. At worst, the company could be grounded until it rights its ownership and effective control structure.

On Monday, the International Air Services Licensing Council meets to examine the same transgression and punitive sanctions it may impose after finding Safair noncompliant in December.

The airline operates regional flights to Zanzibar, Mauritius and Zimbabwe, along with its domestic schedule.

Collen Msibi, transport department spokesperson, said the Licensing Act outlines sanctions the councils may impose, including directing Safair to comply with legislation within a specified period, suspending the licence temporarily, or cancelling it entirely.

This provides the airline with an opportunity to address any issues, depending on the council's final determination.

The Air Services Licensing Act requires that 75% of voting rights in any South African airline are held by local residents.

The Domestic Council interpretation of the law means Safair does not meet the nationality provisions, as 75% of its shares are held by SA trusts and companies, rather than individuals.