Harith acquires SA’s largest airline, FlySafair

Harith General Partners, one of the largest investors in African infrastructure, is set to take full ownership of South Africa’s largest airline, FlySafair. The move expands its impressive transport and logistics portfolio, which includes stakes in Lanseria andTraxtion, Africa’s largest private rail operator. Harith, through a special purpose vehicle, Harith Aviation, has entered into a sale and purchase agreement to acquire the entirety of FlySafair for an undisclosed amount, the two companies announced on Tuesday.

“The transaction follows a long-standing shareholder exit process at FlySafair that has been under consideration for several years. Harith’s proposed investment reflects confidence in FlySafair’s proven operating model, strong management team and long-term growth prospects,” Harith said in a statement. “Consistent with Harith’s value-focused, long-term investment approach, the intention is to support FlySafair as a disciplined and successful business, maintaining continuity under its existing leadership and further bolstering Harith’s strategy to secure an integrated transport network.” The proposed deal fulfils Harith’s long-held ambition of owning an airline, after its deal to acquire a majority stake in SAA collapsed in 2024 when the private equity firm walked away from the transaction after it was caught up in a political storm.

Harith immediately went on the hunt for another airline following the collapse of the SAA deal — a search that has culminated in the private equity firm getting its hands on FlySafair, a company that holds 67% of the available seat capacity amongst all domestic carriers in South Africa. The deal will see FlySafair’s current owners, which include Irish firm ASL Aviation Holdings, exit the business. However, the airline’s management, which has equipped itself well in building the airline into a dominant player 12 years into its existence, will stay put under Harith Aviation ownership.

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FlySafair’s ownership came under public scrutiny in 2022, when two industry competitors lodged complaints with the national and international regulatory authorities following the disclosure of ASL Aviation Holdings’ subsidiaries. When ASL Aviation Holdings first established FlySafair in 2014, they set up a shareholding structure whereby 25% remained in their direct possession and the other 75% was held locally through two other shareholders. The local shareholders consist of the Safair Investment Trust, a South African company holding about 50% ownership, and the remaining 25% is held by an employee share scheme designed by ASL Aviation Holdings to ensure compliance with local ownership requirements. In essence, ASL had a 75% exposure to FlySafair, drawing the ire ofdomestic and international regulators.

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