FlySafair sold to the same investor who manages South Africa’s only private international airport

South Africa’s highest antitrust authority approved private equity firm Harith General Partners’ proposal to acquire budget carrier FlySafair.

The decision by the Competition Tribunal, announced on Wednesday, seals one of the most significant aviation transactions in South Africa in years.

It will hand control of the market leader in Africa’s biggest economy to an infrastructure investor seeking to expand its footprint across the transport sector.

Subject to getting outstanding approvals and satisfying remaining conditions, the transaction is currently expected to close later this year, the company said in a statement on Thursday.

The deal will give the private equity firm, which manages $3 billion (R49.9 billion) in assets, control of a carrier that holds more than 60% of South Africa’s airline seating capacity.

It also addresses regulatory pressure to meet South African ownership rules. 

The Domestic Air Services Council in 2024 said that the carrier was in breach because trusts and companies — not people — own 75% of the airline’s voting rights. The ruling followed a complaint by local rival Lift. 

For Harith, the investor will benefit from the airline’s brand recognition, operating scale and a network that reaches most of South Africa’s busiest routes.

The low-cost carrier has grown from a two-aircraft operation launched in 2014 into the dominant force in South African aviation with more than 30 aeroplanes. 

The deal will be between Harith Aviation and FlySafair’s parent, Safair Holdings. 

Harith previously said the deal would account for about 15% of its portfolio and be funded by debt and equity. 

Harith also owns a stake in Lanseria International Airport, and the regulator will implement conditions to ensure fair treatment of competitors.