In a recent development within the South African aviation sector, industry investor Harith General Partners has announced plans to acquire FlySafair, one of the country’s leading low-cost airlines. The deal will see Harith's aviation arm take control while allowing FlySafair to continue operating under its current brand, leadership, and strategic course. Approval from competition and aviation regulators remains a requisite before the transaction can be finalized.
This investment aligns with Harith’s broader expansion into infrastructure and transport, including a stake in Lanseria International Airport. FlySafair, established in 2014, commands over 60% of domestic seat capacity, operating ten domestic and five regional routes with a fleet of 39 Boeing 737 aircraft, serving over 54 million passengers to date.
Regulatory and Strategic Considerations
The acquisition is viewed as a strategic move to help FlySafair meet the South African ownership requirements. Recently, the Domestic Air Services Council found the airline in breach of ownership rules, as trusts and companies held 75% of voting rights. FlySafair has been given approximately a year to address these issues, with ongoing regulatory compliance vital to its license retention.
"While the deal may help with ownership compliance, the airline will continue to follow the necessary regulatory processes. Operations will continue under the existing leadership and strategy,"
Kirby Gordon, Chief Marketing Officer
Harith’s co-founder, Tshepo Mahloele, confirmed that management and strategic direction will remain unchanged post-acquisition. The deal is expected to close following regulatory approval, with timelines to be determined.
Historically, Harith considered investments in South African Airways and Comair, but those opportunities did not materialize. Industry analysts suggest that the transaction will enable FlySafair to expand regionally and capitalize on the African Continental Free Trade Area, all while maintaining licensing compliance.
This move signals a significant step in the consolidation of South Africa’s low-cost airline industry, promising potential expansion and continued growth for FlySafair.
