In the private sector, commercial airlines Airlink and Global Airways Operations have complained to aviation authorities that Safair, parent company of FlySafair, is largely owned by foreign shareholders, which allegedly flouts the conditions of its aviation licence and the country’s laws.
In the public sector, Public Enterprises Minister Pravin Gordhan has terminated the sale of a 51% stake in SAA to Takatso, a consortium of private sector players, after 2½ years of negotiations. Airlink and Global Airways Operations have launched complaints with two aviation authorities — the International Air Services Council and the Air Services Licence Council. The complaint at the former is set to be heard on 11 April.
Safair was then forced to change its ownership structure to have local ownership. In doing so, ASL Aviation Holdings created the South Africa-based Safair Investment Trust in which a large shareholding in Safair was controlled by locals, including its employees, who were awarded 25% of the company shares. This paved the way for Safair’s aviation licence to be granted and for it to be allowed to operate.
“Compliance with the local laws on local shareholding and ownership is the law, whether you like it or not,” said an aviation industry player. In the public sector, the SAA deal has reached the end of the runway and has failed to take off. The terms and conditions of the sale of SAA have been shrouded in secrecy and Gordhan has refused to publicly disclose details of how it will be structured.