COMAIR found itself in the
High Court in Pretoria earlier
this month over allegations
that it didn’t comply with
South Africa’s restrictions
on foreign ownership and, if
found guilty, could see the
airline losing its licence to fly.
In 2014, FlySafair laid a
complaint against Comair
for non-compliance with the
Licensing Act in terms of
foreign ownership, which
states that the maximum
percentage of voting rights
allowed by foreigners on
domestic airlines is 25%.
While Safair withdrew its
complaint, the Air Services
Licensing Council (ASLC)
pursued the matter.
The matter was brought
before the High Court on
March 10. However, according
to a report in Moneyweb,
the court was told that
the allegations against
Comair were based on a
misunderstanding.
The ASLC mistakenly
thought that fund manager,
Allan Gray, who is a natural
person living in Bermuda,
invested in Comair. However,
the foundation, Allan Gray,
owns 26% of Comair.
The council based its
case on an analysis of 26%
shareholding of Comair by BB
Investments. They say that a
portion of BB Investments’
shareholding should be
classified as foreign, because
BB Investments is 100%-
owned by Bidvest; 46%
of Bidvest’s shareholders
are foreign and by applying
that percentage to BB
Investments, the council
says Comair’s total foreign
shareholding is above the
legal limit.
However, Advocate for
Comair, Mike van der Nest,
says Bidvest’s shareholders
do not own the assets
of Bidvest or any of its
subsidiaries. They merely own
shares in Bidvest, a South
African company, and that it
is incorrect to apply Bidvest’s
foreign shareholding directly
to BB Investment.
A spokesperson for Comair
told TNW that Judge Joseph
Raulinga had reserved
judgement on the matter, and
the ASLC has been interdicted
from suspending Comair’s
air services licence until the
matter has been finalised.
“No specific timeframe has
been provided on when a
judgement is to be handed
down,” the spokesperson
said.
