FlySafair Stands Firm Against Controversial ASLC Ruling Threatening South Africa’s Airlines

• The Air Services Licensing Council’s interpretation of airline ownership rules could disrupt the aviation sector
• FlySafair challenges the decision, seeking legal clarity to protect the industry and passengers
• Industry leaders warn of job losses, fewer flight options, and increased travel costs if the ruling stands.

South Africa’s aviation industry faces potential turmoil following a controversial ruling by the Air Services Licensing Council (ASLC), which threatens the operations of numerous airlines. At the heart of the matter is the ASLC’s interpretation of the Air Services Licensing Act, which requires 75% of voting rights to be held by “Residents of the Republic.”

This recent interpretation excludes trusts and companies, effectively mandating that airlines be owned by individual (natural person) shareholders—an unrealistic expectation in an industry reliant on significant investment. FlySafair, Airlink, SAA, and other major players could be deemed non-compliant under this ruling.

FlySafair’s Chief Marketing Officer, Kirby Gordon, described the decision as “catastrophic,” warning of severe consequences for the aviation and tourism sectors.

“This interpretation could cripple the industry, leading to reduced flight options, job losses, and economic damage,” he stated.

A Looming Crisis for Aviation

The ASLC’s stance appears to favour a single beneficiary, Lift Airlines, raising questions about fairness and industry-wide implications. “There’s no reason that the rest of the industry, the economy, or the flying public should be harmed through drastic and brash decision-making,” Gordon added.

FlySafair has responded decisively, seeking a declaratory court order to challenge the interpretation and clarify the law. This step not only seeks to protect its operations but also aims to provide stability for the entire industry.

Public and Industry Concerns

The aviation community has expressed widespread concern, with experts warning that if the ruling stands, flight schedules could be disrupted, ticket prices could rise, and job losses could ensue. The decision could also deter international investors, further straining the economy.

FlySafair remains committed to a constructive resolution. The airline has called on the Minister of Transport to intervene and ensure that the ASLC adopts a balanced and practical approach.

Source: Briefly News