FlySafair Deal Moves Ahead with Tribunal Approval

In Short

FlySafair is moving closer to a change in ownership after South Africa’s Competition Tribunal approved Harith Aviation Consortium’s proposed 100% acquisition of the airline.

What Happened: How Harith Plans To Buy FlySafair

FlySafair, South Africa’s biggest domestic airline, is a step closer to new ownership.

The Competition Tribunal approved Harith Aviation Consortium’s plan to acquire 100% of the carrier.

Harith said the transaction would keep ownership in South African hands and provide long term capital to support FlySafair’s next phase of growth.

FlySafair is expected to keep operating under its existing management team and low cost business model.

The deal still needs outstanding regulatory approvals and must meet closing conditions.

Why It Matters: Competition And Ownership Questions

The transaction raised competition concerns because Harith also has a stake of about 37% in Lanseria International Airport.

The Tribunal’s approval includes conditions designed to prevent the exchange of sensitive competitive information. It also aims to ensure that other airlines using Lanseria are not treated unfairly.

FlySafair controls more than 60% of South Africa’s domestic airline seat capacity.

The acquisition also follows years of controversy over FlySafair’s ownership structure. South African rules require at least 75% local ownership of a domestic airline, and FlySafair’s existing structure had faced challenges from industry competitors and regulatory authorities.

The deal was reportedly worth about R7 billion and is expected to be finalised before the end of the year, subject to outstanding regulatory approvals and conditions.