FlySafair Faces Ownership Compliance Issues and Potential Workforce Strike

South Africa’s low-cost airline, FlySafair, is navigating turbulent times, with regulatory and workforce challenges casting uncertainty over its operations. The International Air Services Council (IASC) has raised concerns over FlySafair’s ownership structure, which appears to contravene South African laws limiting foreign ownership of local airlines to 25%. In addition, a looming strike by FlySafair’s workforce could further impact its operational stability.

Ownership Compliance Issues

The inquiry into FlySafair’s ownership began in October 2022, prompted by complaints from Airlink and Global Aviation, which operates as LIFT. FlySafair’s majority shareholder is Ireland-based ASL Aviation Holdings, which holds 74.86% of the airline, suggesting that FlySafair’s majority ownership resides outside South Africa.

This structure has raised compliance questions, as South African law requires local airlines to be majority-owned by South Africans. FlySafair’s restructuring in 2019 did not include a change to its air service license, adding to regulatory scrutiny. The IASC may soon impose sanctions, which could range from fines to suspending the airline’s license, if FlySafair does not address this ownership structure.

FlySafair remains committed to regulatory compliance and has expressed a willingness to work with authorities to resolve the issue. The airline emphasized that the situation does not impact its current operations, stating it remains “business as usual” while it addresses the IASC’s concerns.

Labour Dispute and Potential Strike

In addition to ownership challenges, FlySafair is facing labour unrest. Trade union Solidarity, representing FlySafair’s workforce, is seeking a strike certificate in response to a new rostering system scheduled for implementation in February. The rostering changes have stirred significant dissatisfaction among crew members, with 93% of Solidarity’s members supporting the strike proposal.

Solidarity has expressed frustration over FlySafair’s decision to move forward with rostering changes despite ongoing discussions. FlySafair has refrained from making a public statement on the dispute but has indicated it may issue one if the situation warrants.

Navigating a Challenging Landscape

FlySafair’s dual challenges underscore the complexities of balancing regulatory compliance with employee relations in a competitive airline market. As the airline seeks a resolution to both issues, it remains focused on its mission of delivering safe and affordable services to South African customers.

While the airline works to comply with ownership regulations, it also faces potential operational disruptions from the looming strike, leaving its leadership to navigate a path that balances regulatory obligations, workforce satisfaction, and business stability.