South Africa’s Top Airline Being Sold to Private Equity Firm

• Private equity firm Harith plans to acquire budget airline FlySafair, pending regulatory approval
• The acquisition aims to resolve FlySafair's regulatory ownership issues and support regional expansion
• Harith's investment portfolio will expand, with FlySafair expected to comprise 15% upon deal completion

Justin Williams, a journalist at Briefly News since 2024, covers South Africa’s current affairs. Before joining Briefly News, he served as a writer and chief editor at Right for Education Africa’s South African chapter.

Private equity firm Harith General Partners plans to buy budget airline FlySafair as it expands its transport investments across Africa. Harith chair Tshepo Mahloele said the transaction is at an advanced stage and awaits approval from competition authorities and two aviation regulators.

Deal expected to close by the fourth quarter

Mahloele stated that Harith will acquire the airline through Harith Aviation, with the deal expected to close by the fourth quarter. He said the acquisition will account for about 15% of Harith’s portfolio and will be funded through a mix of equity and debt. The deal is expected to help FlySafair address regulatory pressure over ownership rules. The Domestic Air Services Council ruled in 2024 that the airline breached regulations because trusts and companies held 75% of its voting rights. The ruling followed a complaint by rival airline Lift. FlySafair was given about a year to comply or risk losing its operating licence.

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According to BusinessTech, FlySafair controls more than 60% of South Africa’s domestic seat capacity. Mahloele said South Africa remains central to the airline’s strategy, adding that its business model could also succeed in regional markets. FlySafair chief marketing officer Kirby Gordon stated that the transaction could assist with licensing challenges, but the airline would still need to follow due process. Dublin-based ASL Aviation Holdings, owned by private equity firm Star Capital Partners, partly controls FlySafair’s parent company, Safair Operations. Mahloele said the transaction will trigger a restructuring within ASL Aviation Group to simplify the shareholding structure. Harith will then acquire full control of Safair Operations.

Pursued investments in South African Airways

Mahloele said Harith previously pursued investments in South African Airways and Comair, but those opportunities fell through due to control, pricing issues and Comair’s collapse in 2022. He said FlySafair presented the strongest opportunity, citing its management team and market share.

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Harith invests in infrastructure across Africa and owns a stake in Lanseria International Airport. FlySafair has sought to change its ownership structure since 2017. A proposed merger with Airlink was blocked by competition authorities in 2018. Qatar Airways later acquired a 25% stake in Airlink in 2024. Gordon said Harith plans to retain FlySafair’s management and strategy. He added that the airline operates 10 domestic and five regional routes, with regional expansion forming part of its long-term growth plans.

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Source: Briefly News