Following approval from the Competition Tribunal, the proposed acquisition of the budget airline FlySafair by Harith General Partners represents a significant step in a major aviation deal in South Africa. This move was announced on Wednesday, October 28th.
This transaction could potentially place one of the country's most recognizable airline brands under the management of an infrastructure investment group with interests across various sectors. Although the transaction is not yet finalized, the companies anticipate closing it later this year, provided remaining conditions are met and necessary regulatory approvals are obtained.
For passengers, the primary concern remains the impact of this change on their familiar airline. Previously, FlySafair assured customers that they could expect normal operations, as the existing brand, management, and strategy are planned to be maintained.
Harith General Partners manages assets worth over $3 billion and has built its business around infrastructure investments, including transport, energy, and telecommunications. The acquisition of FlySafair will provide the group with a substantial presence in South African aviation.
The airline has grown significantly: starting passenger services in 2014 with two aircraft, it has expanded its fleet to over 30 aircraft, becoming a dominant player in the domestic market. According to Bloomberg, FlySafair accounts for over 60% of seats on domestic flights in South Africa.
Harith stated that this investment is part of a broader strategy to create an integrated transport network. The group already has an interest in Lanseria International Airport, making the purchase of the airline particularly important for the country's aviation sector.
In February, Harith and its affiliates signed an agreement to acquire the airline through Harith Aviation, which is purchasing Safair Holdings—FlySafair's parent company. The goal of the deal is to provide long-term investment while preserving FlySafair's ability to operate under its established model.
The acquisition attracted the attention of competition authorities due to Harith's existing interests in airports. The Competition Commission previously recommended approving the deal conditional on implementing protective measures designed to prevent FlySafair from receiving preferential treatment compared to competing airlines at Lanseria. These conditions include restrictions on sharing commercially sensitive information and requirements to provide airport-related services to competing airlines on fair, reasonable, and non-discriminatory terms.
These measures aim to prevent an unfair market advantage arising from the link between the airline and the airport investor. The situation also drew opposition from competing airline CemAir, which petitioned the Tribunal to block the acquisition or impose stricter guarantees. CemAir expressed concerns regarding the relationship between FlySafair, Lanseria, and other aviation interests.
This dispute demonstrates why competition authorities analyze not only who is acquiring the company but also how the deal might affect its competitors.
The proposed takeover also occurs against the backdrop of an ongoing dispute over FlySafair's compliance with ownership rules in South Africa. In 2024, the Aviation Services Licensing Council expressed concern about the airline's ownership structure and its adherence to regulations governing local voting rights and effective control. Competitors Lift and Airlink also challenged the airline's position.
The acquisition by the South African investor is intended to change the ownership structure, but FlySafair previously warned that this deal would not automatically resolve individual licensing issues. These matters remain subject to relevant aviation authorities and legal processes.
It is important to understand that approval under antitrust legislation does not substitute for specific regulatory requirements governing the airline's operating licenses. With the approval of the Competition Tribunal, the transaction may approach completion after satisfying the remaining conditions and permissions.
The final outcome will be significant both for Harith's expansion in aviation and for the national carrier that transports a large share of South Africa's passengers. It has been stated to clients that the intention is to ensure continuity of service, not immediate complete restructuring. A more serious test will be whether the new ownership structure can ensure long-term stability while guaranteeing fair access for competing airlines to vital aviation infrastructure.