By Lehlohonolo Lehana.
Transport Minister Barbara Creecy rejected FlySafair request to intervene in the airline’s dispute of contravening the foreign ownership threshold in the domestic and international airspaces, leading to the possibility of it being taken off South African airspace routes.
FlySafair urgently called on Creecy to intervene in regulatory proceedings that have found the airline falling foul of the country’s foreign ownership restrictions.
The airline argues that civil aviation regulators’ interpretation of the law is flawed and, if applied, would render nearly every airline in the country non-compliant, potentially resulting in widespread suspensions and “catastrophic” economic repercussions.
The budget airline faces a potential suspension or cancellation of its domestic and international operating licences. With a domestic market share of 60%, it argues this would destabilise the local aviation market, threaten the livelihoods of its 1,925 employees with job losses extending to other industries, and result in significant damage to the South African economy and tourism industry.
In a statement released on Thursday, the department said Creecy had declared FlySafair’s exemption request to be “premature”, effectively rejecting it. In other words, Creecy does not want to make an exemption to benefit FlySafair while the council is yet to issue a sanction against the airline for breaching aviation laws and regulations.
“This, therefore, means that due processes should be followed and concluded. The council should eventually pronounce on its final determination. Safair can thereafter exercise its right to appeal if it feels aggrieved by the final decision of the council,” said the department, adding that Creecy had sought legal advice before making her decision.
This means the risk of FlySafair having its aviation licence suspended or cancelled remains. The council could impose less draconian sanctions, including slapping FlySafair with fines or penalties, or giving the airline more grace (no sanctions) and time to alter its shareholding structure by possibly selling shares in the company to South Africans.
Kirby Gordon, FlySafair’s chief marketing officer, said that the airline acknowledged Creecy’s decision. “We await further advice from the relevant parties,” said Gordon.
The next few days will be crucial for FlySafair as it is set to meet officials of the International Air Services Council (IASC) about the appropriate sanctions against the airline.