Major changes coming for FlySafair

Harith General Partners, a South African private equity firm, is in advanced talks to acquire budget airline FlySafair, as the infrastructure-focused investor expands its transport footprint across the continent.

Bloomberg reports that Harith, which manages about $3 billion in assets, plans to buy the airline through its aviation unit, Harith Aviation.

The transaction is expected to be finalised by the fourth quarter of the year, chairman Tshepo Mahloele said.

The deal remains subject to regulatory approval, including clearance from competition authorities and aviation licensing bodies.

FlySafair was established in August 2013 as a low-cost subsidiary of Safair, a veteran aviation company with a history dating back to 1965.

Although the airline originally planned to launch in late 2013, its start was delayed by legal challenges from competitors regarding its ownership structure and compliance with South African aviation laws.

After restructuring to meet local requirements, FlySafair officially commenced operations on October 16, 2014, with an inaugural flight between Johannesburg and Cape Town.

In the decade since, it has grown into South Africa’s largest domestic carrier

FlySafair, which accounts for more than 60% of South Africa’s domestic seat capacity, has faced mounting regulatory scrutiny over compliance with local ownership rules.

In 2024, the Domestic Air Services Council ruled the carrier was in breach of regulations after finding that trusts and corporate entities, rather than individuals, controlled 75% of its voting rights, following a complaint lodged by rival airline Lift.

Mahloele said the FlySafair acquisition would represent about 15% of Harith’s portfolio and would be financed through a combination of equity and debt, though he declined to disclose the deal value.

The investment could help the airline resolve its licensing risk, after it was given roughly a year to meet the ownership requirements or face the possibility of its operating licence being revoked.

FlySafair’s chief marketing officer, Kirby Gordon, said the transaction may assist with regulatory compliance, but noted that the airline would still need to follow the required legal processes.

FlySafair’s parent company, Safair Operations, is partly controlled by Dublin-based ASL Aviation Holdings, which is owned by London private equity firm Star Capital Partners.

Harith previously pursued a stake in South African Airways, but the government ended negotiations after three years.

The firm also considered investing in Comair, the former operator of British Airways flights in South Africa, before it collapsed in 2022.

Mahloele said FlySafair has emerged as the strongest opportunity, citing its management team and dominant market share.

Harith already holds a stake in Lanseria International Airport, northwest of Johannesburg.

FlySafair has sought to restructure its ownership since 2017, including a proposed merger with Airlink that was blocked by competition regulators in 2018. Airlink later sold a 25% stake to Qatar Airways in 2024.

Gordon said Harith intends to retain FlySafair’s existing management and strategy, which currently includes 10 domestic and five regional routes, with regional expansion forming part of the airline’s longer-term growth plans.