FlySafair's licence under threat due to breach of foreign ownership rules
Air Service Licensing Council ruled that the airline's ownership structure does not comply with current regulations.
FlySafair adds 11 new destinations flights in Southern Africa. Photo: Twitter
Stephen Grootes interviews Guy Leitch, SA Flyer Magazine Editor.
Listen to the interview in the audio player below.
Budget-airline FlySafair is not compliant with foreign ownership rules, according to the Air Service Licensing Council.
According to current regulations, foreign ownership of a domestically registered airline is limited to 25%.
However, FlySafair’s majority ownership is held in Ireland, with shareholder ASL Aviation Holdings holding the majority share.
Speaking to Stephen Grootes on The Money Show, Guy Leitch, editor of SA Flyer Magazine says the licensing council will share further communication around its ruling in the coming weeks.
"It might sound all terrifically technical, but it's immensely important to the South African airline industry. Just three or four months ago we saw the long awaited announcement of Qatar buying a 25% in Airlink. They would've bought a lot more if they could've."
- Guy Leitch, editor - SA Flyer Magazine
"The real problem here is that it limits foreign investment, and the recapitalisation of airlines. SAA would, I think probably also love to see a foreign owner with perhaps with a 49% or 50% ownership."
- Guy Leitch, editor - SA Flyer Magazine
"There's a good argument to say we don't need a law like that, or we don't need one as restrictive as 25%. Most countries have a 50% limit on foreign ownership..."
- Guy Leitch, editor - SA Flyer Magazine
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