You could be paying more for flights soon
Flight tickets may increase again with the possibility of South Africa’s most popular airline being grounded.
FlySafair may soon be grounded after the Air Services Licensing Council (ASLC) confirmed the airline’s violation of local shareholding laws.
This could see a huge increase in the cost of flights with one less airline available to handle high flight volumes.
According to the Air Services Licensing Act, airlines must have 75% of their shares owned by local South Africans. These shares must be owned by individuals and does not include corporate companies or trusts.
The ASLC has uncovered that FlySafair’s majority shareholder is an Irish holding company, ALS Aviation Group. ALS owns 74,86% of the airline, placing FlySafair in breach of local and international aviation licensing regulations.
BusinessTech reported that complaints were lodged by other competing airlines, and an investigation was launched in October 2022. FlySafair was found to be non-compliant.
If FlySafair is grounded, it will have a massive impact on South Africa’s aviation and travel industries.
The airline currently controls roughly 60% of the domestic market and operates up to 160 flights daily, moving around 30,000 passengers every day.
The sudden loss of this capacity would overwhelm other airlines, leaving many travellers stranded and causing major disruptions in air travel.
With few alternatives available, ticket prices are likely to skyrocket, putting further strain on consumers and limiting access to affordable travel options.
The increased ticket prices would also deter tourists from travelling to South Africa, which could affect tourism and economic growth.
The ASLC’s ruling is a major threat to FlySafair and local travel. If the council upholds this ruling, the aviation industry could see a period of instability and uncertainty.
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