South Africa’s International Air Services Council (IASC) has found FlySafair in violation of foreign ownership restrictions, casting a shadow over the airline just weeks after it marked a decade of operations. The Johannesburg-based low-cost carrier now faces unspecified sanctions, with details expected by the end of November.

FlySafair, a subsidiary of Ireland’s ASL Aviation Group, has an effective foreign shareholding of 74.86%. Yet, South Africa’s Air Services Act mandates that domestic airlines retain at least 75% local ownership, and the International Air Services Act requires a “substantial” local shareholding, commonly interpreted as at least 51%. FlySafair’s compliance has thus been a matter of dispute, particularly after the council flagged its structure: Safair Investment Trust holds 49.86% of FlySafair, with the balance ultimately owned by ASL Aviation, amounting to a 74.86% foreign stake.

This isn’t the first time FlySafair’s ownership has faced scrutiny. When the airline was launched in 2013, competitors like Comair and Skywise challenged its licensing on similar grounds. Today, FlySafair has expanded significantly, capturing nearly 60% of South Africa’s domestic market.

The IASC inquiry began in late 2022, following an ownership amendment application. Competitors Airlink and Global Airways, operator of LIFT, formally flagged FlySafair’s compliance with local ownership laws, prompting further investigation. FlySafair contends that its structure aligns with both the letter and intent of the law. Trustees of the Safair Investment Trust own 49.86%, with the remaining 25.14% held by B4i Safair, a local employee ownership scheme.

Responding to the IASC ruling, FlySafair reiterated its commitment to compliance: “We take the IASC’s decision seriously and await further communication. Supported by senior legal advice, we believe our structure remains within regulatory bounds.”

While the IASC manages international air service licensing, the Air Services Licensing Council (ASLC) governs domestic licensing under separate legislation. FlySafair now faces a separate challenge before the ASLC from rival Global Aviation.