Air Services Council’s interpretation puts South African airlines at risk

JOHANNESBURG - FlySafair has raised alarm over a recent decision by the Air Services Licensing Council of South Africa, stating that the body’s interpretation of aviation laws could jeopardise most of the country’s domestic airlines.

The council ruled in December 2024 that FlySafair did not meet the nationality provisions of the Air Services Licensing Act, which requires 75% of voting rights in a domestic airline to be held by South African residents.

While the law specifies “voting rights,” the council claims that under the South African Citizenship Act of 1995, such rights must be held only by natural persons, dismissing trusts and companies as valid holders.

FlySafair CMO Kirby Gordon warned this interpretation could disrupt the aviation industry, as it would render airlines like Airlink and South African Airways (SAA) non-compliant under similar ownership structures.

“This reasoning raises serious concerns,” Gordon said.

“If the council proceeds on this basis, the knock-on impact to the industry at large will be catastrophic.”

The council’s decision follows a similar one made by the International Air Services Licensing Council in October, which was halted through a court interdict. FlySafair has since applied for a declaratory order to clarify the law’s ambiguities.

Gordon added that the council’s stance clashed with established legal precedents, including a 2014 ruling that advised against “looking through” layers of ownership. He emphasised that the interpretation benefits only Lift Airlines, which lodged the complaint against FlySafair.

With 87% of South Africa’s domestic seat capacity potentially affected, the stakes are high. FlySafair remains committed to resolving the issue constructively, Gordon said.

Operations are continuing as usual while the matter is addressed.