Flysafair questions Comair’s ownership compliance

The current dispute between Comair and the Air Services Licensing Council (ASLC) originated as a complaint lodged by Flysafair with the ASLC questioning Comair’s level of foreign ownership. The Air Services Licensing Act stipulates that no more than 25% of the voting rights in a domestic airline may be held by foreigners, and Comair is confident that it complies with this limit.

“It is important to note that whilst FlySafair has subsequently stated that it has no interest pursuing its complaint, the ASLC is still not satisfied that Comair is compliant with the Air Services Licensing Act, which is something we certainly do not agree with” says Comair CEO, Erik Venter.

“Although the ASLC has stated that a consequence of non-compliance may be the suspension of our air services license, it has to date not clearly articulated any intention to commence the suspension / cancelation proceedings as stipulated in the Act”.

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Following numerous failed requests to the ASLC to provide Comair with an undertaking that it will not take any further action against Comair, pending the outcome of a legal review, Comair has been left with no other alternative but to seek relief through an urgent application to interdict the ASLC from potentially suspending Comair’s domestic license, pending the outcome of a review by a court of law.

The Company wishes to stress that the disagreement with the ASLC does not relate to the safety of the Company’s operations. The disagreement with the ASLC relates exclusively to a shareholder regulatory issue.

“We trust that the Council will co-operate with Comair and that we will not have to rely on the interdict application.We emphasise that Comair does not wish to be confrontational and respects the decisions taken by the Council but it is left with no alternative but to take steps to protect our interest, customers, and shareholders.” Venter concludes.

Author: Muzi Mohale

Hi there, am your host and I blog about the tourism industry in South Africa. You’re also welcome to contribute your expert content on matters affecting the industry. You can reach me on muzi[at]tourismedition.com

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