As South Africa’s aviation sector stands on the brink of a crucial ruling regarding foreign ownership of airlines, the landscape remains fraught with uncertainty.
Following sporadic payments made by the Department of Transport (DoT) to the Domestic and International Air Services Licensing Councils, industry stakeholders have been keenly awaiting clarity on pressing issues, including a vital dispute involving FlySafair and the stake of Qatar Airways in the airline.
According to highly placed sources, the councils have endured a tumultuous time, with the South African Civil Aviation Authority (SACAA) and the DoT pushing the councils to the backburner while legislative measures are implemented to transfer them back under DOT oversight.
“We have nowhere to work in all reality between SACAA and the DoT,” a source told Business Report on Tuesday.
“At least they have started paying councillors, even though it’s not complete. We have to play catch up with important decisions, but it shows these people are not organised.”
The delays in payments have raised questions in the industry, with a private sector participant expressing concern.
“Any idea why they were not paid? The industry needs them to do their work - the FlySafair foreign ownership ruling is long overdue and urgently needed to provide clarity on how the foreign ownership limits should be interpreted and applied,” he said.
Sources within the Councils have noted that overdue payments, which have been pending since January to April of this year, have only recently begun to trickle in.
Despite positioning their remit as timely, DoT national spokesperson Collen Msibi contradicted this.
“The remuneration of members of the licensing councils was processed on time by the department,” Msibi said.
However, challenges persist, as the Councils grapple with uncertainty due to advertisements for council posts and proposed changes to remuneration still pending publication.
Moreover, significant changes are underway regarding foreign operator permit applications, which will now be processed solely via online platforms.
Cliffe Dekker Hofmeyr has alerted industry participants about the potential implications this shift may cause, particularly for applications already under review, indicating that delays may occur during this transitional period.
“Operators are encouraged to maintain proactive communication with the Department of Transport to ensure minimal disruption to operations,” the law firm advised.
In light of these turbulent conditions, International Air Services Licensing Council chairperson, Nomveliso Ntanjana, has chosen to defer comment.
“There are matters as councils we cannot comment on except for the specific instruction of either the DOT or SACAA,” Ntanjana said.
With the future of foreign airline ownership limits hanging in the balance, the aviation industry in South Africa is at a critical juncture, one that requires quick resolution and professional oversight to avoid further complications.
The industry remains hopeful for a decisive ruling that will not only clarify existing confusions but also ensure a more stable framework moving forward.
BUSINESS REPORT