South African Minister Says FlySafair Ownership Exemption Premature
South Africa’s Transport Minister, Barbara Creecy, has stated it is premature to grant FlySafair an exemption from legal provisions requiring at least 75% South African ownership. The Department of Transport (DOT) issued a statement on January 16, indicating the minister is awaiting further advice before making a decision.
FlySafair’s exemption request stems from ongoing disputes with the Air Services Licensing Council regarding its compliance with ownership laws. The council is currently reviewing oral submissions from a January 14 meeting involving FlySafair and complainant Global Aviation Operations, which operates rival Lift Airlines.
The minister instructed the DOT to seek senior legal counsel on the matter while regulatory processes continue. FlySafair CEO Elmar Conradie was informed of this decision following a January 9 letter requesting exemption while the airline seeks clarification from the South African High Court.
FlySafair disputes the council’s interpretation that 75% of voting rights must be held by South African citizens who are natural persons. According to the council, FlySafair’s control lies with its parent company, ASL Aviation Holdings, based in Ireland and Belgium. FlySafair argues this interpretation would render most South African airlines non-compliant, citing errors in the council’s reasoning and legal expertise.
The airline also faces similar challenges from Global Aviation and Airlink before the International Air Services Licensing Council, which found it non-compliant. FlySafair has secured a court interdict delaying punitive actions pending further discussions on January 20.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com