Don’t panic! FlySafair unlikely to be grounded – business journalist

Business journalist Zinathi Gquma shares the latest business news on The Money Minute on 947.

Things are a little turbulent for one of the country’s biggest domestic airlines.

The International Air Services Council could cancel or suspend FlySafair’s aviation license, grounding its international flights, until it fixes its shareholders structure.

ALSO READ: FlySafair at risk: 'I'm hopeful there won't be a disruption' - Guy Leitch, SA Flyer Magazine

The council ruled that its shareholding arrangement is in breach of the Air Services Licensing Act, which requires a minimum of 75% local ownership.

“FlySafair’s major shareholder ASL Aviation Holdings is from Ireland, which owns almost a 75% stake.”

– Zinathi Gquma, The Money Minute

The International Air Services Council’s full ruling and sanctions are set to be issued by the end of November 2024.

FlySafair has several international routes to Southern African countries, including Mauritius, Zanzibar, and Zimbabwe.

“This is not the time to panic… it doesn’t look like they are actually going to ground the service but just give them time to rectify it or give them a fine.”

– Zinathi Gquma, The Money Minute

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