During the Business Update on Kaya Breakfast, Gugulethu Mfuphi unpacked why the Competition Commission has backed Harith Partners’ proposed acquisition of FlySafair.
By Bulelwa Hoala
The Competition Commission has recommended that the proposed acquisition by private equity firm Harith General Partners of a controlling stake in budget airline FlySafair be approved, subject to certain conditions.
Speaking to DJ Fresh and Thato Mataboge during the Business Update on Kaya Breakfast, Gugulethu Mfuphi unpacked what the decision means for South Africa’s aviation industry and why FlySafair has become one of the country’s most successful low-cost airlines.
FlySafair has long operated under a complex ownership structure, with a significant portion of its shareholders based in Ireland. This has previously raised questions about the airline’s compliance with South Africa’s ownership and regulatory requirements.
According to Mfuphi, Harith General Partners, a private equity firm with investments in renewable energy projects and a stake in Lanseria International Airport, has been pursuing the acquisition for some time.
“The proposed transaction has gone through several regulatory hurdles, and now the Competition Commission has recommended that it be approved by the Competition Tribunal,” she said.
If the Competition Tribunal gives the final approval, Harith will acquire a 60% stake in FlySafair.
However, the Commission has attached conditions to the deal to ensure fair competition within the aviation industry.
These include safeguards to prevent unfair discrimination against competing airlines, particularly regarding airport-related goods and services at Lanseria International Airport, as well as measures to ensure transparency and the appropriate exchange of commercially sensitive information.
Why FlySafair has become a market leader
Mfuphi said FlySafair’s success in South Africa’s competitive low-cost airline market comes down to several operational strengths.
She highlighted the airline’s efficient fleet management, strong maintenance practices and consistent operational reliability as some of the key reasons it has built a loyal customer base despite increased competition from other budget carriers.
Listen to the full discussion on the podcast as Gugulethu Mfuphi unpacks the FlySafair acquisition and the latest developments affecting the rand.
The Business Update on Kaya Breakfast is brought to you by Liberty.
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