South African Aviation crisis looms as controversial ruling threatens airlines

FlySafair challenges the Air Services Licensing Council’s interpretation, warning of dire consequences for the aviation industry.

South African Aviation crisis looms as controversial ruling threatens Airlines. Image: Supplied

South Africa’s aviation sector faces potential chaos following a controversial ruling by the Air Services Licensing Council (ASLC), which questions the compliance of major airlines with ownership provisions under the Air Services Licensing Act.

The ruling has resulted from a complaint made to the ASLC by Lift Airlines arguing that FlySafair doesn’t comply with the foreign control provisions it outlines.

The ASLC has interpreted the Act’s requirement that 75% of voting rights in airlines be held by “Residents of the Republic” to mean individual (natural person) shareholders, excluding trusts and companies. This restrictive stance has sparked industry-wide concern, as many airlines, including heavyweights like Airlink, SAA, and FlySafair, operate under corporate or trust-based ownership structures.

FlySafair Condemns ASLC Interpretation

FlySafair, a key player in South African aviation, has criticised the ASLC’s interpretation as both “erroneous” and “problematic,” warning that it jeopardises the stability of the entire industry.

“This decision could cripple aviation and tourism, reduce flight options, and cause massive job losses,” said Kirby Gordon, Chief Marketing Officer at FlySafair. “It’s a brash interpretation that benefits no one—except perhaps one airline.”

Although not named directly, speculation suggests that Lift Airlines might uniquely meet the ASLC’s interpretation, raising questions about the Council’s motivations and decision-making process.

Legal Action and Industry Impact

FlySafair has taken proactive measures to seek a declaratory order from the courts to clarify the Act’s provisions, a move the ASLC has opposed along with their competitors. The airline remains resolute in its position, emphasising that this interpretation contradicts established legal precedents.

If the ruling is upheld, the consequences could ripple across the industry:

Reduced flight availability: Airlines could face operational disruptions, leading to fewer routes and increased ticket prices.
Higher fares: resulting from a drastic loss of supply in the market leaving those left operating able to charge what they please.
Economic fallout: Job losses and diminished tourism revenue could significantly impact the economy.
Passenger inconvenience: Travelers may face reduced flight options and service quality.

Industry Calls for Ministerial Intervention

FlySafair and other industry stakeholders are urging the Minister of Transport to intervene. “The entire aviation sector, and by extension the South African economy, cannot be held hostage by a flawed interpretation of the law,” Gordon said.

The airline remains committed to advocating for an inclusive and sensible approach to the Act, which supports the growth and sustainability of South Africa’s aviation industry.