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South African low-cost carrier FlySafair has recently provided clarity on concerns raised by the International Air Services Council (IASC) over its foreign ownership structure. The carrier, which is a familiar name among domestic travelers, confronted issues jeopardizing its international operations.
Travel News conveyed remarks from FlySafair’s Chief Marketing Officer, Kirby Gordon, who specified the IASC's non-compliance dispute pertained solely to the airline's international practicing license. "We hold both an international and domestic license; hence, any potential effects of this matter would be limited to our international routes," Gordon explained.
Addressed to the stakeholders and customers, the communication highlighted FlySafair’s stance on the matter. Gordon assured the public that, according to diligent checks with legal advisors, the airline believed it fulfilled all legislative stipulations regarding its shareholder setup. "Our current goal is to actively participate in legal dialogues to work out a solution that aligns with the expectations of all parties involved," he stated.
The crux of the matter lies in the limits imposed by South African law on foreign investment in domestic airlines — capped at 25%. It came to light that FlySafair, contrary to these regulations, has an overwhelming foreign presence in its ownership. Ireland's ASL Aviation Holdings, allegedly, has a compound 74.86% stake in the airline, combining a direct equity interest of 25% with an indirect proximity of 49.86% through Safair Investment Trust. This overshoots the prescribed limit materially and has prompted the IASC to consider enforcing sanctions on FlySafair that could range from the suspension of its license to monetary fines if the ownership structure is not rectified within a specified timeframe.
Gordon remarked with sincerity on the potential severity of such repercussions, reinforcing the commitment of FlySafair to navigate the situation with utmost importance. "The implication of a suspension is daunting, but we stand ready to act decisively to avoid or mitigate any impact this may have — most importantly — to protect our customers' travel plans and trust in FlySafair," he committed. The airline's immediate priority remains to liaise with the authorities, seeking an expedited and favorable resolution, further ensuring continuity and reliability of service to its clientele.
FlySafair's pledge to tackle the controversy head-on and safeguard the interests of its customers underlines the airline's resilience in challenging times. The story is expected to develop further as discussions with the IASC progress and FlySafair's strategies unfold.