ASL Aviation risks FlySafair license in ownership dispute
Irish company ASL Aviation, the majority owner of South Africa’s largest airline, FlySafair, is contesting a ruling that its ownership structure violates local regulations.
In South Africa, the International Air Services Licensing Act limits foreign ownership in local airlines to 25%. However, ASL Aviation — directly or via subsidiaries — owns nearly 75% of FlySafair, the country's leading domestic carrier.
This has drawn repeated complaints from competitors, including Airlink and Global Airways. In late 2024, the International Air Services Licensing Council (IASLC) warned FlySafair of potential sanctions, including license suspension or cancellation.
The company was given 12 months to resolve the issue, a deadline that expires this December.
FlySafair takes legal action
As reported by News24, FlySafair has now filed a legal challenge against the IASLC's decision, arguing that its ownership structure fully complies with South African laws.
The airline previously restructured its ownership to ensure that, formally, only 25% is held by foreign entity Safair Holdings. Another 25.14% is held by South African firm B4i Safair, and 49.86% by a South Africa-registered trust.
Under South African law, if an airline is not owned by a natural person residing in South Africa, it must be registered locally and 75% of its voting rights must be held by South African residents.
FlySafair insists that what matters most is “control” rather than “ownership.” From that perspective, entities registered in South Africa control 75% of the voting rights.
However, legal experts argue that South African law distinguishes between legal entities (like trusts) and natural persons. Therefore, FlySafair must prove its case in court — or risk serious consequences.
FlySafair currently dominates domestic air travel in South Africa, holding a 60% market share and transporting around 130,000 passengers daily.
Airfare prices in South Africa have risen in recent years due to a shortage of flight options — especially following the collapse of airline operator Comair (Kulula). The removal of another key carrier could cripple the domestic aviation system and make air travel even less accessible.
As we wrote, FlySafair pilots begin nationwide strike, flights face major disruptions
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