Really Bad News
SAFAIR the private airline operating in South Africa had a 60% market share and I would say the reality it was closer to 90%. South African Airways the SOE airline is non existent and you only see the odd plane every now and then. Who were the people trying to con saying SAFAIR has only 60% of domestic flights?
The ownership cleverly being disguised just under the 75% still caught them out because they were making profits. This is not normal in SA aviation businesses especially with the SOE SAA going bust and still struggling after business rescue.
The problem with SAFAIR is the ownership having 74.86% owned by Ryan Air the Irish airline company. This was all hidden away via trust companies registered in South Africa, but they all ended back pointing at the ownership of ASL Aviation Holdings which is Ryan Air. They are the only airline that has managed to make a profit flying planes in South Africa so this must have been the big give away. I know this is hard to imagine knowing the Johannesburg to Cape Town route is regarded as one or if not the most lucrative route in the world. A two hour flight time with a high demand requiring an average of 42 flights daily transporting upwards of 6 million passengers annually. How could anyone lose money having a route like this and SAFAIR was the only airline to make this work.
SAFAIR had until March to sort out it's shareholdings or face the removal of the local license. In steps investment firm Harith General Partners who is a 30% SOE due to the Public Investments Corporation owning 30% of this investment company. This is a government owned SOE company whether it is obvious or not and have been trying to acquire an airline for over 12 years now.
Harith General Partners tried to purchase COMAIR who was partnered with British Airways ,but that airline collapsed and disappeared mainly due to SAA interferences. SAA collapsed and went into business rescue with Harith General Partners seeking a bargain deal purchasing the airline for R1 being rejected. The SAFAIR having their licenses threatened has left them with no choice as there is no other interested parties so the deal will be a proper low ball way below market value which will not be revealed unless Ryan Air let the number slip.
The worrying part is they say they will not interfere with the daily operations of the airline and only give them 6 months before they do. Many of the pilots and cabin crew were ex employees of the SOE SAA and will not be happy with this take over. Expect to see many crew members to seek employment elsewhere outside the country and SAFAIR to start deteriorating accordingly. This is what happens when an SOE is involved in a private business and their track records tell you the inevitable outcome. This is the only airline that one could have trusted for local flights and thankfully I do not fly often internally. Oddly enough I have a flight in the next two weeks for a day trip to visit a new accountant otherwise they are on a more reluctant if I have to fly basis as I do not trust the local airlines especially if government run or now owned.