FlySafair edges closer to ownership change

South Africa’s biggest domestic airline, FlySafair, is a step closer to new ownership. This comes after the Competition Tribunal approved Harith Aviation Consortium’s 100 percent acquisition of the carrier. Harith says the transaction will keep ownership in South African hands and provide long-term capital to support the airline’s next phase of growth.

FlySafair is set to continue operating under its existing management team and low-cost business model. However, the transaction has raised competition concerns because Harith also holds a stake of about 37 per cent in Lanseria International Airport. The approval comes with conditions intended to prevent the exchange of sensitive competitive information and ensure that other airlines using Lanseria are not treated unfairly.

ALSO READ: Private equity firm prepares for takeoff with proposed acquisition of FlySafair FlySafair controls more than 60 per cent of South Africa’s domestic airline seat capacity. The acquisition also comes after years of controversy over FlySafair’s ownership structure. South African rules require at least 75 per cent local ownership of a domestic airline, and FlySafair’s existing structure had faced challenges from industry competitors and regulatory authorities.

The deal, reportedly worth about R7 billion, is expected to be finalised before the end of the year, subject to outstanding regulatory approvals and conditions. Never miss a major story. Get breaking news and the latest developments from South Africa and beyond as they happen.