Harith Agrees to Acquire FlySafair in Major Aviation Deal

South African private equity firm Harith General Partners has agreed to acquire budget airline FlySafair. The deal expands Harith’s transport portfolio across the continent. The firm manages approximately $3 billion in assets. It said the transaction is at an advanced stage but remains subject to regulatory approvals, including clearance from competition authorities and two aviation licensing bodies.

The acquisition will be executed through Harith Aviation. It is expected to close by the fourth quarter, according to Chairman Tshepo Mahloele. In a statement, the firm confirmed it had entered into a sale and purchase agreement to acquire FlySafair. It described the carrier as one of South Africa’s most successful and fastest-growing airlines.

Regulatory Pressure and Ownership Compliance

The deal is expected to ease regulatory pressure on FlySafair, which controls more than 60% of South Africa’s domestic seat capacity. In 2024, the Domestic Air Services Council ruled that the carrier was in breach of ownership regulations after finding that trusts and companies — rather than individuals — held over 75% of its voting rights. The ruling followed a complaint by rival airline Lift. FlySafair was given approximately one year to comply with the requirements or risk losing its licence.

Mahloele said the acquisition would represent about 15% of Harith’s total portfolio. It will be funded through a mix of equity and debt. He added that South Africa remains central to FlySafair’s strategy. However, he believes the airline’s model also has regional growth potential.

Reorganisation and Strategic Continuity

FlySafair Chief Marketing Officer Kirby Gordon said the transaction may help resolve permit issues. However, regulatory processes must still be followed. The deal will also trigger a reorganisation within ASL Aviation Group. The Dublin-based aviation group is partly controlled by Star Capital Partners. The restructuring aims to simplify the shareholding structure of its South African subsidiary, Safair Operations (Pty) Ltd. Harith is expected to complete a full takeover once the reorganisation is finalised.

Harith previously explored investments in South African Airways and Comair but did not conclude those deals. Mahloele said FlySafair represents the strongest opportunity to date. He cited its experienced management team and significant market share.

Harith also owns a stake in Lanseria International Airport. It intends to retain FlySafair’s leadership and strategy. The airline operates 10 domestic and five regional routes. Regional expansion forms part of its longer-term growth plans.