South Africa’s largest low-cost airline, FlySafair, could soon change hands as private equity firm Harith General Partners moves to acquire the carrier.
Media reports indicate that Harith, which manages about $3 billion in assets, is in advanced talks to buy FlySafair as part of a broader strategy to expand its transport investments across Africa. BusinessTech reports that negotiations are well progressed, although the transaction still requires regulatory approval.
Harith chairman Tshepo Mahloele confirmed that the acquisition remains subject to clearance from competition authorities and two aviation licensing bodies.
According to Mahloele, the firm plans to acquire the airline through its aviation unit, Harith Aviation. He said the transaction could be finalised by the fourth quarter of the year, provided approvals are secured.
“The deal will make up about 15% of our overall portfolio,” Mahloele said.
“It will be funded through a combination of equity and debt.”
The potential deal could also help FlySafair address long-standing regulatory concerns around ownership.
In 2024, the Domestic Air Services Council ruled that the airline was in breach of South African ownership rules. The council found that trusts and companies, rather than individuals, held 75% of the airline’s voting rights. The ruling followed a complaint from rival airline Lift.
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FlySafair controls more than 60% of South Africa’s domestic seat capacity, making the ownership issue a significant risk to its operating licence.
Regulators gave FlySafair roughly a year to bring its ownership structure into compliance or face possible licence suspension.
FlySafair chief marketing officer Kirby Gordon said a deal with Harith could assist with the process, but stressed that the airline must still follow formal procedures.
“Any transaction would still need to go through due process,” Gordon said.
FlySafair operates under Safair Operations (Pty) Ltd, which is partly controlled by ASL Aviation Holdings, based in Dublin. ASL is owned by London-based private equity firm Star Capital Partners.
The structure has long drawn scrutiny from regulators concerned about effective local control of domestic airlines.
Harith previously explored buying a stake in South African Airways, but those talks collapsed after three years. Mahloele said disagreements over pricing and control ultimately ended the negotiations.
“We had to move on, but our ambition to add an airline to our transport portfolio remained,” he said.
He described FlySafair as the most compelling opportunity to date, citing its strong market position and management team.
Harith plans to retain FlySafair’s existing management and strategy if the deal goes through.
The airline currently operates 10 domestic routes and five regional routes. Gordon said regional expansion began shortly after the Covid-19 pandemic and remains a key part of FlySafair’s long-term growth plans.
“While regional operations are still small compared to the domestic market, they are strategically important,” he said.
Harith had also previously considered acquiring a stake in Comair, the former local operator of British Airways, before Comair ceased operations in 2022.
