Future up in the air

SAFAIR: FOREIGN OWNERSHIP, LICENCE UNDER THREAT AS IT AWAITS SUITOR

- Hein Kaiser

Budget airline FlySafair is fighting to hold on to its operating licence and will next week challenge an Air Licensing Council ruling last year that it had contravened foreign ownership laws.

The council governing domestic flights found that Irish-based ASL Aviation Holdings effectively owns 74.86% of FlySafair, which is in violation of South African laws that limit foreign ownership to 25%.

In November, the International Air Services Licensing Council, which regulates services outside SA's borders, concluded the same.

The Air Licensing Council will meet next week to hear arguments in mitigation or aggravation of the established verdict.

But a source within the aviation sector suggests a local suitor may provide a free pass to the carrier.

The former corporate lead in the Takatso Consortium's failed bid to buy SAA, Harith General Partners, have purportedly made a third pass at airline ownership as suitor.

This time it is keen to acquire equity in FlySafair, which will help the airline to overcome the local ownership hurdle the company is facing.