Staff Lose as Money Flows Out

CASH EXIT: FLYSAFAIR 'TRANSFERS BILLIONS TO ITS SHAREHOLDERS IN IRELAND'

- Hein Kaiser

Amid a pilot strike due to protracted wage negotiations and along with domestic and international licensing compliance deadlines, it is now alleged FlySafair, South Africa's only budget air carrier, transferred substantial cash to its shareholders in Ireland.

A source said more than R1.31 billion was transferred abroad at the tail-end of the Covid pandemic, during a time when FlySafair reportedly told employees it could not afford basic cost-of-living salary increases.

The allegations are supported by the audited financial statements of Safair Aviation (Ireland) DAC, a holding company with no employees and minimal expenses, which reports to parent company ASL Aviation Holdings.

According to the statements, Safair Aviation (Ireland) DAC received $54.5 million (about R956 million) in 2022, and a further $20.3 million in early 2023, from its South African subsidiary, Safair Holdings (Pty) Limited – the parent company of FlySafair.

In total, over $74.8 million was transferred abroad in just over a year.

FlySafair did not respond to requests for financial data covering earlier or later periods.

"This is not just executive hypocrisy; it is a textbook case of pandemic profiteering," the source said.

"Employees were told to sacrifice because the company was apparently struggling, yet foreign shareholders were enriched with sums that dwarf what would have been needed to treat staff fairly."

At the time the funds were expatriated, pilots and other staff faced wage freezes and reduced benefits.