Newly established FlySafair has hit back at objections launched by Comair to the Air Services Licensing Council claiming that the airline does not meet the requirement of a 25% limit of foreign ownership.
In a statement sent to Tourism Update, Dave Andrew, CEO of FlySafair, was categoric that Safair met the air service licence requirement that at least 75% of its voting rights were held by South African residents.
An article that appeared in Business Day yesterday , quoted Comair as saying that it had launched two objections against the grant of an air service licence. The first objection is that one of FlySafair’s directors, Hugh Flynn, is not ‘normally resident’ in South Africa as he resides in Ireland, although he travels to South Africa on a regular basis. The second objection raised by Comair is that Safair was a ‘front’ formed to enter the South African domestic market.
Responding to the first objection, Andrew said that Flynn was born and grew up in Germiston, Johannesburg. “He has always been involved in aviation and, aside from having served in the South African Air Force, currently holds a valid South African commercial pilot’s licence.
“On July 5, Comair Limited raised its objections about foreign ownership with the Air Services Licensing Council of South Africa, who considered and rejected the validity of their concerns. On August 23, FlySafair was subsequently granted permission to start its own domestic low-cost operation,” said Andrew.
“Safair agrees with the concept of a deregulated and competitive domestic airline industry where all airlines are required to comply with the applicable aviation legislation and to compete fairly and equally with one another for market share. It is for this reason that Safair Operations (Pty) Limited, which owns and operates low-cost carrier, FlySafair, has a 75% South African shareholding, in accordance with the Air Services Licensing Act.”
The remaining 25% of the voting rights in Safair Operations (Pty) Limited is owned by Safair Aviation Ireland Limited, which in turn is wholly owned by the Irish ASL Aviation Group.
“I believe that it is also pertinent to reiterate that Safair has had a 75% South African shareholding since 2009. No organisation or individual has ever questioned this structure before, so it is surprising that Comair Limited is raising objections now that we have announced the launch of a low-cost competitor, which will naturally challenge its kulula operation,” said Andrew.
“Flynn is SA-born SAAF veteran” hits back Safair
“Flynn is SA-born SAAF veteran” hits back Safair
30 Aug 2013 - by Jeanette Phillips
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