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The Competition Commission of South Africa has recommended approval of the acquisition of FlySafair by Harith General Partners, subject to conditions aimed at preserving competition.
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The regulator imposed safeguards because Harith already has a stake in Lanseria International Airport, raising concerns over possible preferential treatment for Flysafair.
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The acquisition will help FlySafair comply with South African ownership regulations while supporting Harith's expansion into Africa's transportation sector.
South Africa's Competition Commission of India (Compcom) said on July 13 that it had approved the acquisition of low-cost carrier FlySafair by infrastructure-focused private equity firm Harith General Partners, subject to conditions.
The transaction attracted close regulatory scrutiny as Harith already owned a stake in Lanseria International Airport, located north-west of Johannesburg.
Although the Commission recommended that the Competition Tribunal approve the transaction, it concluded that Harith's cross-shareholding could create incentives to give preferential treatment to FlySafair over rival airlines operating through Lanseria Airport.
“To address competition concerns arising from the proposed transaction, the parties agreed to the following terms: a restriction on the exchange of commercially sensitive information and commitments to ensure that aviation or airport-related goods and services supplied to other airlines at Lanseria Airport will not be provided on unfair, unreasonable or discriminatory terms.” the commission said in a statement.
The regulator said the measures would ensure that competing airlines would not suffer competitive disadvantage as a result of the transaction.
Harith General Partners announced in February 2026 that it had agreed to acquire FlySafair, but did not disclose financial terms of the deal.
However, according to comments reported by Bloomberg, Harith chairman Tshepo Mahlole said at the time that the acquisition “will represent approximately 15% of the firm's overall portfolio” and “will be funded through a combination of equity and debt.”
Mahlole also indicated that Harith intends to support FlySphere's regional expansion.
“South Africa is FlySafair's homeworld and plays a key role in its strategy. We believe its business model can also compete successfully at the regional level.” He said.
Compliance with ownership rules
This transaction is part of a long-running process for existing shareholders to exit Flysafair's ownership structure. It also responds to regulatory pressure to comply with South Africa's corporate ownership requirements.
In 2024, the Domestic Air Services Council ruled that Flysafair violated ownership rules because trusts and corporate entities controlled 75% of the airline's voting rights. The decision came after a complaint filed by local competitor Lyft Airlines.
Ireland-based ASL Aviation Holdings, which is owned by London-based private equity firm Star Capital Partners, holds a controlling stake in FlySafair's parent company, Safire Operations.
Established in 2014 in South Africa's highly competitive aviation market, FlySafair reached profitability within two years.
The airline now controls over 60% of domestic seat capacity. It operates approximately 10 domestic routes and five regional services connecting South Africa with Zimbabwe, Namibia, Mauritius and Zanzibar.
The transaction will also allow Harith General Partners to expand its transportation investment portfolio across Africa.
Harith manages approximately $3 billion in assets and holds investments in 14 companies across the energy, transportation, digital infrastructure, healthcare and water sectors in nine African countries, including Kenya, Nigeria, Côte d'Ivoire and Mauritius.
This article was initially published in French by Walid Kefi
Ange J. Adapted into English by A. de Berry Quenam