FlySafair files urgent interdict against ruling affecting flights

FlySafair has filed an urgent application for an interdict against the SA International Air Services Council (IASC) ruling that the shareholding structure of low-cost airline FlySafair was not compliant with the law.

The decision could end in a sanction that affects the airline’s ability to operate. This ruling pertains solely to FlySafair’s international routes and would not affect any domestic flights as they are governed by a separate licence.

The IASC ruled recently that it was satisfied FlySafair had contravened and/or failed to comply with provisions of the law in that the company structure comprises a 49.86% shareholding by the Safair Investment Trust, which is eventually 100% owned by ASL.

This is in addition to the 25% shareholding directly owned by ASL. SA aviation law limits foreign ownership in domestic airlines to 25%, a matter still before the IASC’s sister body, the Domestic Air Services Council.

The IASC also ruled that FlySafair failed to apply for an amendment of its air service licence when its ownership structure changed in March 2019. The IASC said it would announce a sanction within the next few weeks.

FlySafair assured customers it was trying to avoid any service disruptions.

“We are engaging with the relevant authorities to avoid any negative impact on customers and have backup plans in place should we need them,” said Kirby Gordon, the airline’s chief marketing officer, in a statement on Monday.

“Competitors have raised objections to FlySafair’s interdict. While their positions may reflect their business interests, we hope that all parties consider the potential impact on travellers and the broader aviation community. Limiting supply on these routes could drive up fares and disrupt travel plans, particularly as demand rises over the summer holiday period.

“By way of example, the additional seat capacity introduced by FlySafair’s entry into the Johannesburg to Harare route in October last year served to drastically reduce average fares by up to 50% over some periods. Any reduction in this supply would have an immediate opposite effect,” Gordon said. /With Carin Smith 

pathers@businesslive.co.za