CompCom clears way for acquisition of Flysafair by part-owner of Lanseria Airport

The Competition Commission has recommended that the Competition Tribunal approve the acquisition of Safair Holdings, parent company of FlySafair, by Harith Aviation, with conditions . The acquiring group is an asset management firm specialising in infrastructure fund management that owns a stake in Lanseria Airport in Gauteng. The CompCom said that to remedy competition concerns, the parties agreed to conditions around information exchange and ensuring that there is no discrimination against other airlines using the Airport. "The merger parties agreed to the following conditions: (i) information exchange; and (ii) ensuring that ensure that the airline-related or airport-related goods or services provided to other airlines at Lanseria Airport are not provided based on unfair, unreasonable or discriminatory terms." Harith said in a statement that its proposed investment reflects confidence in FlySafair’s "proven operating model, strong management team, and long-term growth prospects". The intended acquisition of the low-cost airline was first announced in February, following regulatory scrutiny over FlySafair's ownership structure. RELATED: Private equity firm prepares for takeoff with proposed acquisition of FlySafair The proposed transaction will now be considered by the Competition Tribunal, which will make the final decision on whether the merger can proceed. Stephen Grootes gets comment from Guy Leitch, aviation analyst and former editor of SA Flyer Magazine. Leitch cautions against a blurring of boundaries between airports and airlines, saying he believes the competition authorities have got it wrong in this case. "There needs to be an absolutely solid wall between airlines and airports because airports are essentially monopolies, and we see that already with Acsa (Airports Company South Africa) having produced over R1.2 billion profit in the last financial year." "There is an enormous temptation... for airports to actually subsidise airlines to get altogether way too cosy and that's something we're seeing now. So my view is that the Competition Tribunal is actually failing the passengers in a number of ways in the airline industry." Leitch also notes that Lanseria Airport has been in trouble for the last six years since the COVID pandemic and is under pressure to "push up prices and get what it can out of the Flysafair deal". Scroll up to the audio player to hear more from aviation analyst Guy Leitch