The Competition Tribunal has approved Harith Aviation Consortium’s acquisition of FlySafair, subject to conditions addressing competition concerns arising from Harith’s interests in Lanseria International Airport.
The approval clears a major hurdle in the proposed acquisition of FlySafair, which was first announced in February.
The transaction will see FlySafair move into entirely South African ownership, with existing shareholders exiting the business.
The Tribunal’s decision follows the Competition Commission’s recommendation in July that the acquisition be approved, subject to conditions.
Competition safeguards
The conditions include restrictions on Harith’s involved in decision’s involvement in decisions concerning Lanseria Airport pricing, slot allocation, apron access and other infrastructure used by competing airlines.
The order also includes safeguards against the exchange of commercially sensitive information and measures to ensure that airport-related goods and services are provided to competing airlines on fair, reasonable and non-discriminatory terms.
Further conditions restrict overlapping board appointments involving the airline, Lanseria and certain other airport interests.
The Tribunal also imposed a three-year prohibition on merger-related retrenchments, subject to specified exclusions.
Business as usual
Harith and FlySafair have previously indicated that the acquisition is intended to support the airline’s continued growth rather than bring about major operational changes.
FlySafair is expected to retain its brand, existing management team and low-cost operating model with potential future investment in fleet and network expansion.
The parties also previously indicated that existing agreements with pilots, cabin crew and suppliers would remain in place.
The transaction has yet to be implemented, pending completion of the remaining requirements.
